Call Volume Surges on AMR Corp. (AMR)

Shares of AMR Corp. (NYSE: AMR) are higher on the session by 1.57%, currently trading at $6.48. The stock is popping on word that AirTran Holdings, Inc. (NYSE: AAI) will be acquired by Southwest Airlines (NYSE: LUV) for $1.4 billion.

Options traders are coming after the calls in the name as well. Within the first thirty minutes of trading, 37,000 calls have traded versus only 3,000 puts. The majority of the volume is coming on the November $7.00 call strike, where 30,000 contracts have traded, majority on the offer. Open interest on the strike is only 14,043 contracts, indicating that today's action is new positioning.

The October and January 2011 $7.00 and $7.50 strikes as also active.

AMR Corporation, incorporated in October 1982, operates in the airline industry. The company's principal subsidiary is American Airlines, Inc. As of December 31, 2009, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia.

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