AAL is on track for its worst single-day percentage loss since May
American Airlines Group Inc (NASDAQ:AAL) is brushing off a fourth-quarter earnings and revenue beat as well as record annual sales, after it also issued a dismal fiscal first-quarter and 2025 forecast. The company cited a sales strategy error that drove corporate travelers away.
AAL is down 8.3% to trade at $17.12 at last glance, on track for its biggest single-day percentage loss since May 29 as they pull back from yesterday's two-year high of $19.10. Shares rose 60.3% in the last six months, with long-term support from their 40-day moving average ready to contain today's steep losses.
The brokerage bunch remains bullish, with 12 of the 20 brokerages in coverage sporting a "buy" or better rating, which leaves the door wide open for downgrades. Meanwhile, short interest makes up 7% of the stock's available float.
The options pits have also displayed a penchant for bullish bets of late. This is per AAL's 50-day call/put volume ratio of 2.89 at the at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 89% of annual readings.
Drilling down to today's options activity, 110,000 calls and 84,000 puts have already crossed the tape, volume that's 6 times the intraday average volume. The most active contract is the weekly 1/24 18-strike put.