$ALGT short term sell or long term hold?

NASDAQ:ALGT   Allegiant Travel Company

Personally I've become a fan of this stock.
I've slowly started getting into conservative long-term investments with gains from quick swing trades. Relatively good dividend yield stocks in a solid market seem to naturally be my choice thus far.
However with Covid-19 still lingering in many countries, travels markets like airliners can still be considered a risky investment. Especially one of the 'smaller' companies like Allegiant.

I've flown Allegiant quite a few times, and I have family in the industry. They're more of a budget airline, and there's plenty of complaints to be found on the discomfort of riding Allegiant. That said, in an industry where not all of the average citizens can afford to participate in, ALGT is common, effective compromise to affordable flying.
But I'm getting off track.

ALGT has seen a nice rally lately. I've been trying to determine if I should take profits or continue to hold, considering this is really a more long term investment choice.
I'm likely going to take some profits quickly and look to enter around the ~$90 area if this setup continues to play out.
If that plays out, it would be amazing to see it come up and reach for the target price of $150 right around the next Earnings report.
Hopefully at that time we'll have a better idea of the current state of the market and be able to use the earnings to help determine the plays for the future.

I'm not the most confident in taking profits now, as I'm trying to keep this in the long term section of my portfolio and this rally could continue on through the week. But after seeing solid gains so quickly, I'm siding with playing it safe and selling in an effort to secure the continuing trend of gains I've been lucky to have since March

The beauty with a company like this in one of the stronger markets, and with a decent dividend yield, it's hardly ever a bad time to add ALGT to your portfolio if you're willing to hold onto it for awhile.

If anyone has any critiques, opinions, etc please feel free to comment & like this simple analysis!

~~Possible quick sell opportunity, with a reentry in the $90-$100 range
~~Overall target price ~$150 around Earnings next month
Trade active: Sold majority of shares and picked up a few Puts Friday by closing.
Puts printed beautifully today. Not used to picking up Options on lower volume symbols, but it hit limit order price mid-day

Preparing to re-enter around $95 if set up continues to hold up and confidence is maintained

Happy Trading
Trade active: Still playing out as planned-
however the 0.382 fib level (~$110) has maintained its role as support and not succeeded in becoming resistance.
This could indicate a possible Entry point as opposed to my original idea of dropping down to ~$90 range near the 0.236 fib level.
I plan on watching more closely this week to better determine if this shows signs of recovering or continuing the correction.

Happy Trading!
Comment: I'm thinking this is going to cool down here, ride up to the ~$121 area marking the 0.5 fib level, and then continue the predicted path.
I'm thinking today's session of positive increases may not continue tomorrow, or at least through the week, considering how much things rose and how unexpected it seems.

However as always, I could be wrong, and in this volatile market it seems especially important to keep a watchful eye and make plays on both side of the fence.

Happy Trading!
Trade active: Moving beautifully! I have not bought back in yet, waiting to see if we break this $107 line or continue down towards the original targeted bottom.

Would love to jump in heavy once we confirm bottom'd, this is going to blow back up once COVID calms down and travel opens back up! Plus its a decent dividend stock
Trade active: Entered a position by purchasing calls when it was at the 106 level, so far seeing halfway decent gains. Its a short term position, since there wasn't clear confirmation of upwards reversal. Keeping a close eye on my position to manage risk
Trade closed: target reached: Price action has been moving almost spot on to predictions. Seeing ~127$ as a more realistic price target.

Closing this idea as Successful!


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