American Airlines (AAL) has seen big time repeat call buying in the Nov $25 calls. 4,500 contracts traded Friday and nearly 5,000 more today. IV still remains low, so let’s follow along with the big call buyer with a call diagonal spread. AAL stock looks to be firming up finally from a technical perspective,.
TRADE IDEA
Buy to open AAL 11/15/2019 $25 calls
and
Sell to open AAL 10/18/2019 $27 calls
for a $1.62 net debit