Looks like it’s about to break that lower trend line it’s hammering on . I like it better as a short.
gregcortz
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Hi. Thanks. I am all in on the airlines. What options trade would you be making? Still learning this stuff. Thanks.
TMoneyBidness
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@gregcortz, Hey Greg. It really all depends on your style, position size, level of risk, etc. The most basic thing would be to buy a longer dated ITM call. So, maybe the $12 call expiry in 30-60 days? The stoploss for this trade is actually just below $12.00. Or, you can buy a short dated OTM call. I've bought a lotto Sept 25 $16 call. Very small amount for this.
If you're looking to get better and a little more serious, I'd highly recommend Big Picture Trading. The guy (Patrick) is very very good and teaches you about the best options (for options ;). He's the guy from Macrovoices and The Market Huddle.
gregcortz
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@TMoneyBidness, Thank You! I am going to study this so I can really understand. Thanks for your help.
TMoneyBidness
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@gregcortz, Also, if you're all in on airlines, you should be looking at protective puts in case if goes against you.
gregcortz
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@TMoneyBidness, It's already against me. I been watching and waiting on AAL for a while. My buy price was $25, when it hit I bought. I was surprised when Buffet sold. Really didn't understand why took a loss that big when most of the value was gone when he sold. I know he bought some when AAL price was in the $30-$45 range. Tax right off? Looks like the govt' is going to help so I don't think they are going to zero but they won't be profitable for a while.