Option update: Delta Air and AMR volatility elevated on merger talks, oil & economy

Posted Nov 15th 2007 1:24PM by Paul Foster
Filed under: AMR Corp (AMR), UAL Corp (UAUA), Options, Delta Air Lines (DAL)

Delta Air (NYSE: DAL) is recently up $0.53 to $20.53. On November 14, Pardus Capital Management, an activist hedge fund, sent a letter to DAL recommending DAL merger with UAL Corp (NASDAQ: UAUA). WTI Crude oil is down 0.51% $93.61 according to Bloomberg. DAL December option implied volatility of 74 is above its 24-week average of 50 according to Track Data, suggesting larger price risk.

AMR (NYSE: AMR) is recently up $1.04 to $24.36. AMR the world's largest airline, has been frequently mentioned as a merger partner over the last seven months. AMR December option implied volatility of 62 is above its 26-week average of 52 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Tags: amr, amr corp, AmrCorp, dal, delta air lines, DeltaAirLines, inthenews, ual corp, UalCorp, uaua