Delta could see a 5.4% move in the stock price following the earnings print on Wednesday morning before the market opens. Jim Strugger, Derivatives Strategist at MKM Partners, tells TheStreet’s Jill Malandrino this implied move is in line with the realized change over the past eight quarters. Options traders find this data by reviewing the at-the-money straddle because it provides clues into the magnitude of the move. The stock is down 13% year-to-date, but there is 40% to the consensus price target. Strugger likes Delta long and thinks earnings will be a catalyst to get some momentum in the stock. One way to play Delta to the long side is with a June 45/50 call spread.
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