UAL Stock Surge Could Have Bears Hitting the Exits

UAL will present at a Credit Suisse conference this week

The shares of United Continental (NYSE:UAL) have continued to push higher, up almost 59% year-over-year and notching an all-time closing high on Friday. Prior to this, a pullback was neatly contained near the site of UAL's September high and the 20-day moving average. The outperforming airline name looks poised to keep rolling, especially with the company set to present at a Credit Suisse conference this week.

Meanwhile, the stock could benefit if short sellers begin to throw in the towel. This is especially true since short interest jumped 39% in the last reporting period alone, putting nearly 6% of the total float in the hands of these bears. Going by average daily trading volumes, it would take almost four sessions to cover these positions.

There's also potential for bullish attention from the analyst community. As of now, eight brokerage firms still have "hold" ratings on UAL, meaning upgrades could come through and help lift the shares.

Now appears to be an attractive time to purchase premium on near-term UAL options, too, with its Schaeffer's Volatility Index (SVI) coming in at 29% -- in the low 21st annual percentile.

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