NEW YORK (MarketWatch) -- Airline stocks rose slightly Monday morning after industry trade data showed international passenger demand rose for October, while oil continued its descent from prior-week trading.

Air Traffic Demand Rose In October: IATA

Shares of US Airways and UAL pare a portion of their earlier losses as investors stay focused on a prospective debt default in Dubai and discount a sharp drop in energy prices.

I hope our US readers had a nice Thanksgiving yesterday. Certainly the financial whizzes at US Airways LCC must have had a particularly satisfying meal yesterday. First they bulked up their airline with cash on Tuesday, and then they bulked up themselves with turkey. by Brett Snyder

I hope our US readers had a nice Thanksgiving yesterday. Certainly the financial whizzes at US Airways LCC must have had a particularly satisfying meal yesterday. First they bulked up their airline with cash on Tuesday, and then they bulked up themselves with turkey. by Brett Snyder

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Fortune Financial

US Airways (NYSE: LCC) will lower capital expenditures over the next three years and increase its reserves by $450 million next year sending shares of the airliner up 17 cents to $3.47....

The markets traded higher during the midday with the Dow gaining 21 points to 10,454 as mortgage rates fell to match a record low. Nasdaq added 5 points to 2174.

Airline stocks are mixed in morning activity with light trading ahead of the Thanksgiving holiday.

Airline Stocks Rise Slightly On Light Trading

U. S. Airways Group Inc. (NYSE: LCC) announced that it will delay taking delivery of 54 new jets in order to increase its cash reserves sending the stock price up 20 cents to close at $3.30....

Today’s tickers: BAC, GE, SEED, EWZ, DE, STLD, LCC, SEED & DLTR

BAC - Bank of America – Long-term Bank of America bulls are out in full force today, scooping up call options like they’re going out of style. BAC’s shares are off slightly by less than 1% to $16.19. Plain-vanilla call buying in the January 2011 contract indicates investors expect shares to surge over the next 13 months. A large chunk of 50,000 calls were picked up at the January 25 strike for an average premium of 86 cents apiece. Shares must rally 60% from the current price to breach the $25.86 breakeven point on the trade. Twice as many calls were coveted at the higher January 30 strike where 100,000 calls were purchased for 45 cents each. The investor responsible for the massive position breaks even if shares jump 88% to $30.45 by expiration. Finally, another BAC-optimist established a ratio call spread in the same contract. The investor purchased 20,000 calls at the January 20 strike for 1.95 apiece, spread against the sale of 40,000 calls at the higher January 30 strike for 46 cents premium each. The net cost of the spread amounts to 1.03 per contract and positions the trader to profit if shares exceed $21.03 by expiration in January of 2011. Maximum potential profits available on the transaction amount to 8.97 per contract. Option implied volatility on Bank of America is currently 38.65% – a scant 2.93% above the 52-week volatility low of 35.77% – attained back on October 20, 2009.

GE - General Electric – A massive bullish bet on General Electric today indicates one investor expects shares to surge 43.8% in the next 13 months. Shares are currently up just under 1% to $16.16. It looks like a staggering 131,500 calls were purchased at the January 2011 22.5 strike for a premium of 76 cents per contract. The trader is apparently expecting GE’s shares to jump at least 43.8% to the breakeven point at $23.26 by expiration in January of 2011. Option implied volatility on General Electric is down to a one-year low of 29.46%.

SEED - Origin Agritech Ltd. – Frenzied options activity continues today on Beijing-based seed producer, Origin Agritech, following yesterday’s announcement that the firm received approval from China’s Ministry of Agriculture to sell its genetically modified phytase corn. Shares are currently up 4% to $10.86, down from an intraday high – and 52-week high –…

A downward revision of the nation's economic growth along with a weak reading of consumer confidence weighed the markets down to a modestly lower close with the Dow slipping 17 points to 10,433. Nasdaq lost 6 points to 2169.

Long-term Bank of America bulls are out in full force today, scooping up call options like they’re going out of style. BAC’s shares are off slightly by less than 1% to $16.19. Plain-vanilla call buying in the January 2011 contract indicates investors expect shares to surge over the next 13 months. A large chunk of 50,000 calls were picked up at the January 25 strike for an average premium of 86 cents apiece. Shares must rally 60% from the current price to breach the $25.86 break-even point on the trade.[More...]

Airline stocks are mostly lower in volatile trading Tuesday morning, though shares of US Airways stage an advance.