Delta Ready to Fly?

Delta Air Lines (NYSE: DAL) received some interesting options activity this afternoon, suggesting a bullish tone. The airline recently announced that they would inject capital into Japan Airlines, as well as an issuance of $688.7 million in pass through certificates. S&P currently has Delta rated as a buy, with a $10 price target; Fitch has various Neutral and Negative ratings on the debt.

Delta Airlines Dec. 8 calls were very active today, trading over 35,000; because volume was slightly below open interest, it remains to be seen whether this action was bullish or bearish. In another transaction, 1,000 Jan. 6 puts were sold. Delta has been trending downward since September and has reached its upward trend line dating back to February. A large movement one direction or another appears to be close on the horizon.