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American Airlines Group Inc. (AAL)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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14.82+1.26 (+9.29%)
At close: 4:00PM EST

14.93 +0.11 (0.74%)
After hours: 7:04PM EST

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  • Benzinga

    Understanding American Airlines Group's Unusual Options Activity

    American Airlines Group (NASDAQ: AAL) shares experienced unusual options activity on Tuesday. The stock price moved up to $14.1 following the option alert. * Sentiment: BEARISH * Option Type: TRADE * Trade Type: CALL * Expiration Date: 2020-12-18 * Strike Price: $17.00 * Volume: 5444 * Open Interest: 10550Three Signs Of Unusual Options Activity One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. The volume of options activity refers to the number of contracts traded over a given time period. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.Another sign of unusual activity is the trading of a contract with an expiration date in the distant future. Usually, additional time until a contract expires allows more opportunity for it to reach its strike price and grow its time value. Time value is important to consider because it represents the difference between the strike price and the value of the underlying asset."Out of the money" contracts are unusual because they are purchased with a strike price far from the underlying asset price. "Out of the money" occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. Buyers and sellers try to take advantage of a large profit margin in these instances because they are expecting the value of the underlying asset to change dramatically in the future.Bullish And Bearish Sentiments Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price.These observations are made without knowing the investor's true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.Using These Strategies To Trade Options Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.For more information to understand options alerts, visit https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alertsSee more from Benzinga * Click here for options trades from Benzinga * 10 Industrials Stocks Showing Unusual Options Activity In Today's Session * 10 Industrials Stocks With Unusual Options Alerts In Today's Session(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • MarketWatch

    Need a change of scenery? Americans are rushing to move their home office to Barbados

    Back in July, Barbados launched a new program giving people cooped up at home during the COVID-19 pandemic the chance to swap their desks and relocate to the remote island for up to a year. Since then, the Barbados Welcome Stamp has drawn 675 applications from U.S. citizens, making that the largest nationality keen to soak in the blue skies and sandy white beaches. Access to the island was made easier in early October, when American Airlines (AAL) resumed flights from Miami International Airport to Grantley Adams International Airport.