Unusual Options Trading: Hawaiian Holdings inc.

Posted in Options 
June 9th, 2008

Hawaiian Holdings Inc. (NYSE: HA) has seen some unusual stock options activity on a low-volume stock activity day. By now even Pygmies have read about high fuel costs running the airline stocks right into the ground. So why is someone making a de-leveraged in-the-money call options bet in the stock?

We have seen two unusual options trade today. Here they are, with open interest (OpInt.):
JAN-09 $5.00 CALLS $3.00 9,000 240
JULY-08 $5.00 CALLS $2.35 8,500 19,178

The other options contracts have seen thin volume, which is to be expected considering that it trades only about 730,000 shares per day. This very well may just be some sort of roll-out date to capture some time value premium. We’ll have to go in and break these down further before giving any exact reasons, but this is an interesting options trade considering the low volume of this stock in a troubled sector.

Jon Ogg
June 9, 2008

10:59 AM EST

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