The airline sector is buzzing, after the consumer price index (CPI) for July showed fares rose 4% last month, in stark contrast to June's 0.1% tumble. In response, the shares of American Airlines Group Inc (NASDAQ:AAL), Delta Air Lines Inc (NYSE:DAL), and United Airlines Holdings Inc (NASDAQ:UAL) are in rally mode.
AAL was last seen leading the pack, up 10.4% to trade at $12.79, on track to snap its three-day losing streak. While overhead pressure remains at the $13 level, shares have added 33% over the past 12 months, and bounced off support from the 80-day moving average earlier this month.
UAL is up 9.7% to trade at $98.01 at last check -- its highest level since late February. Now pacing for its sixth win in the last seven sessions, the security is breaking above resistance at the $95 level, which capped price action in July. Longer term, the shares boast a 142.2% year-over-year lead.
After earlier surging to levels not seen since March, DAL is up 8.3% to trade at $57.99. The shares are trimming a slim 4.1% year-to-date deficit on a bounce off the supportive 60-day trendline. Delta Airlines stock also sports a much more favorable 48.6% year-over-year lead.
Options bulls are blasting AAL, UAL, and DAL today, with call volume running at triple the intraday average volume for the first two, and four times the amount typically seen at this point for the latter. The September 14 call and 100 call are the most positive contracts for AAL and UAL, respectively, while DAL's September 60 call is leading the charge, with positions opening at all three.
