Bears Bet Big Against This Airline Stock
By Brandon Chapman, CMT
Hey trader,
Two weeks ago, the bullish case on American Airlines was built on short covering. That thesis required oil prices to cooperate.
They have not.
Crude futures are now pricing a 16% premium between the front month and next contract. That premium blows away what the market priced at the start of the conflict.
The Block Hunter Console flagged 44,000 put contracts bought on American Airlines at the $10 strike in two prints during today's session.
That is the largest single-name print of the day. The sweep hit at the ask, confirming a new bearish position.
Negative skew on AAL is steep. Implied volatility runs 68% at the sold strike and only 60% at the bought strike. That gap means the market is financing your spread, and the $2-wide put vertical costs just 72 cents.
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Institutions just flipped their positioning on the airline that was a squeeze candidate two weeks ago. The Block Hunter Console flagged the moment 44,000 contracts landed and confirmed directional bias through fill location.
The Console lit up opportunities on KSS (375% in 13 days), PLUG (206% in 5 days), and VFC (100% in just 24 hours).
Missed the latest Block Hunter webinar? The replay is available now.
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