UAL Corp to Fall?

UAL Corp (NASDAQ: UAUA), parent company of United Air Lines, is seeing heavy put action in the name. The March $15 puts have been bought on the offer in large chunks all morning long, with the contract volume currently at 26,119 on open interest of 8,954. This indicated a very bearish tone, especially given that on a large up day in the market the stock is trading down, currently by 2.45%.

Volatility is pumped up in the March contracts so any play should try to mitigate that volatility. I am suggesting and executing the March $15/14 put spread in UAL Corp. for $0.38. Your max loss is $0.38, what you paid, and the max gain would be $62 should the stock fall to $14 or below, which is was just trading at a few days ago.