Third-quarter earnings season is officially here, with Delta Air Lines Inc (NYSE:DAL) the first high-profile name to step into the confessional. The airliner reported adjusted third-quarter earnings of $1.71 per share on $16.7 billion in revenue, both of which exceeded estimates. Delta also hiked its fourth-quarter guidance and is poised to grow profit margins in 2026.
The entire airline sector is buoyed by the upbeat guidance, with peers United Airlines (UAL) and American Airlines (AAL) up 4.1% and 2.2%, respectively. Delta stock is up 5% to trade at $60.01, and earlier traded as high as $62.27. The shares have found support at the 80-day moving average.
Options traders are flocking to calls this morning in response. At last check, 81,000 calls have changed hands, volume that's 8 times the average intraday amount and in the 100th percentile of its annual range. The November 65 call is the most popular by a wide margin, while the October 65 call is also seeing notable attention.
Plus, the stock's Schaeffer's Volatility Scorecard (SVS) of 85 out of 100 suggests it has tended to outperform volatility expectations over the past year.
