This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bulls Want to Fly Hawaiian

By David Russell of OptionsMonster

NEW YORK -- The parent of Hawaiian Airlines has broken above its highs from late 2009, and the bulls are piling on board.

OptionMonster's tracking systems detected unusual activity in Hawaiian Holdings' (HA) April 9 calls, with more than 7,000 purchased mostly for $0.90. Volume was far above the strike's previous open interest of just 419 contracts, showing that new positions were initiated.

More than 4,000 January 8 calls were sold around the same time for $1.20, so it appears that some of Friday's buys were a roll of a bullish long position up in strike and out in time.

Long calls lock in the price where shares can be bought, letting investors position for gains by using much less capital than purchasing shares directly. The options can deliver significant leverage in a rally but will expire worthless if the stock falls too far.

Hawaiian's shares were down fractionally before the trades hit but then turned around and closed higher by 1.71% to $9.50. The stock has appreciated 55% in the last six months.

Short interest was 19% of the float at the end of last month, which could provide some additional jet fuel as well for the stock.

Overall option volume was more than 100 times greater than average in the session, with calls accounting for a bullish 96% of the total.

-- Written by David Russell

Russell has no positions in HA.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports