American Airlines (AAL) saw plenty of options action last week, along with several other stocks that have been heavily shorted. Airlines have struggled with the ongoing pandemic so they’ve attracted plenty of short-sellers.
However, traders have been targeted these down and out stocks for heavy out-of-the-money call buying in an effort to squeeze the stock higher. AAL also had earnings out last week. In this case, there was at least one very large call block that traded which could be in anticipation of a much higher stock price by March expiration.