President Donald Trump's declaration that a ceasefire with Iran is over has traders betting on gains in crude oil and losses in airline stocks.
There's just one big catch: airline stocks are up since the war began.
The U.S. Global Jets ETF is down 4% Wednesday, extending a two-day decline after challenging all-time highs last week. The group is up 10% since the U.S.-Iran war started.
Options trading in both crude oil and airline stocks suggests consumers may want to brace for a fresh repeat of conflict-driven pricing fluctuations.
Put-buying accounted for almost 75% of all options trading in JETS Tuesday.
"This has all the makings of a serious short squeeze under way," Phil Streible, chief strategist at Blue Line Futures, said.
Investors looking for clarity on what the latest renewal of the conflict means for travel demand and input prices for airlines won't have to wait long: Delta Airlines reports earnings before the opening bell on Friday.
The stock's up 25% year-to-date, almost triple the return of the S&P 500.
