Airline Investors Flocking to ALK Options Amid Industry Upturn

Smart Money is Betting Big in ALK Options

A surge in activity in the options market for Alaska Air Group Inc. (ALK) has caught the attention of market observers, with many smart money players piling in on the airline's stock.

According to data from Benzinga Pro, ALK options trading has seen a significant increase in recent days, with the number of contracts traded reaching levels not seen in several months. The majority of the activity is centered around the airline's near-term options, with traders betting big on ALK's upcoming earnings report.

One of the most popular options trades is the ALK April 15, 2023, $60 strike call option, which has seen a massive influx of buying interest. This option has traded over 15,000 contracts in the past week alone, with the majority of the activity coming from institutional traders.

The rapid increase in options trading has sparked speculation that smart money players are positioning themselves for a potential breakout in ALK's stock price. The airline's shares have been trading in a tight range for several months, but some traders believe that the company's upcoming earnings report could be a catalyst for a significant move higher.

ALK is set to report its first-quarter earnings on April 20, and many traders are expecting the company to deliver strong results. The airline has been benefiting from a rebound in air travel demand, and many believe that this trend will continue throughout the year.

The options market is pricing in a significant move higher in ALK's stock price following the earnings report, with the implied volatility of the April 15, 2023, $60 strike call option reaching levels not seen in several months. This suggests that many traders are expecting a big move in the company's stock price, and are positioning themselves accordingly.

Overall, the surge in options trading in ALK is a sign that smart money players are betting big on the airline's future prospects. With the company set to report its earnings in just a few days, traders are eagerly awaiting the release of the report to see if ALK will continue its upward trend.