Delta Air Lines Options Analysis Highlights Attractive Trades

Delta Air Lines offers new options that investors find appealing. With recent put and call contracts, options strategies may yield potential returns amid market fluctuations.

Date: 06-03-2025

AI Rating: 6

Options Trading Insights for Delta Air Lines

In the provided report, Delta Air Lines Inc (Ticker: DAL) has seen the introduction of new options contracts, which could significantly affect the stock’s price movements. With the put contract at a $56.00 strike and a call contract at a $57.00 strike, investors are provided with interesting strategies for engaging with DAL shares.

The put contract at the $56.00 strike generates a current bid of $1.70. If exercised, it obligates the investor to buy shares at $56.00, resulting in an effective cost basis of $54.30, which is an attractive entry point versus the current price of $56.61. This represents a modest discount of approximately 1% to the existing stock price. The data suggests a 53% probability of the put expiring worthless, implying a potential return of 3.04% on the cash commitment, or 22.18% annualized if it does.

On the other hand, the call contract at the $57.00 strike price carries a current bid of $1.89. If an investor purchases shares at the current price of $56.61 and sells the call, the total return could be 4.03% (excluding dividends) if the stock is called away by April 25th. This call option offers a potential expectation of the stock appreciating in value while providing immediate premium income. The likelihood of this contract expiring worthless stands at 50%, and if it does, it could generate a 3.34% additional return or 24.39% annualized.

Another point of interest is the implied volatilities for these options contracts, with the put at 44% and the call at 50%. The actual trailing twelve-month volatility is calculated at 34%, indicating that current market conditions present some uncertainty, which could provide opportunities for gains in the stock.

Stocks: DAL