Allegiant Travel Company (NASDAQ:ALGT) stock is down 3.9% to trade at $91.24 at last glance, after news that the company will buy budget airline competitor Sun Country Airlines (SNCY) in a deal valued $1.5 billion, or $18.89 per share, which is expected to close in the second half of 2026.
Though ALGT is now on track for its worst single-day percentage loss since November, it still boasts a 101.6% nine-month lead. The security on Friday surged to its highest level since February, following a bounce off long-term support at the 20-day moving average.
Albeit amid light absolute volume, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ALGT's 10-day call/put volume ratio of 7.38 sits higher than all readings from the last year. This means options traders have been much more bearish than usual. Echoing this, short interest makes up 9.9% of ALGT's available float, despite falling 24% in the last two reporting periods.
Options are affordably priced at the moment, per the security's Schaeffer's Volatility Index (SVI) of 57% that sits in the 20th percentile of annual readings. What's more, the stock has tended to outperform volatility expectations in the past year, as its Schaeffer's Volatility Scorecard (SVS) sits at 90 out of 100.
