American Airlines AAL ready to bounce yet?I've never traded airline stocks. I like AAL here though-seeing a potential broadening formation. I might consider a small position and set a target for that unfilled gap. Longer term, airline stocks appear cheap right now although I'm not ready to turn bullish on them yet. I'm just not that familiar with them.. but this looks like it has good potential.
A1G trade ideas
$AAL Iron CondorHaven't posted on here in a bit. Figured I would share some plays that take advantage of the recent spike in volatility.
Airlines have taken an absolute beating, and if you put a gun to my head I would say that will continue. However I don't see it happening at the same pace and we should get a couple green days mixed in. The high IV has provided a very wide profit zone here, a range equal to nearly 50% of the underlying with only 3 weeks til expiration.
Buy: 3/20 24 Call
Sell: 3/20 22 Call
Sell: 3/20 14 Put
Buy: 3/20 12 Put
Net Credit: $52
Max Loss: $148
Now, you can own AAL for 60% discount !Since the peak almost 3 years back, the price of AAL has been nothing but down ,down , down.
So, if you have the patience to hold for years, you can make such good returns shorting as well.
Now, are we going to witness a breakout soon or will it heads lower ? It is safe to err on the side of caution since the Covid-19 virus has not subside , in fact the flame seems to be getting stronger by the day.
AAL is just one of the travel stocks that got hit though their exposure to Asia travel routes may not be as high compared to Cathay Pacific
This will be one sector that I will be researching more indepth months down the road when the virus is eliminated or a cure is found. Or at least things are much in control and people are feeling safe to travel once more. Imagine global conferences being cancelled , meetings and events business badly affected, so are the hotels, taxi business, F&B, the whole chain that are related. Note that not all events or meetings can be done online, the need for face to face meetings still very much exist in this 21st century.
Imagine the CEOs and executives not able to claim for their 5 stars accommodation and 1st class seat flight along with 3 star Michelin F&B restaurant, what will the world become ? HAHA
$AAL - Weekly breakout ou juste continuation de la baisse? Voici mon analyse sur $AAL :
- Actif dans une tendance baissière depuis longtemps (une correction de plus de 50%)
- Point clé au niveau du canal pouvant donner sur un breakout ou continuation pour shorter
- Un niveau short réduit à 16% hier alors que la moyenne générale est 40%
- Un bloc institutionnel important de 9mil à 28.33 (smart money) a été complété pouvant donner une volatilité plus élevé
- Moyenne mobile 200 servant de résistance niveau daily également
- Attendre un signal de breakout confirmé pour la hausse et échec du retest pour continuer la baisse.