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AwesomeAvani
Jul 9, 2023 11:37 PM

Delta Airlines DAL Pre-Earnings Play 

NYSE:DAL120
Delta Air Lines, Inc.NYSE

Description

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DAL has been ascending for two months now and has upcoming earnings. As can be seen

on the 2H chart, price has been consistently above the anchored mean VWAP since June 1st.

Price crossed over the POC line of the volume profile on June 26th. This is the level where

the most trading volume in the time range occurred. Above that line, buyers and their buying

pressure are dominant. The Zero Lag MACD shows the lines crossing and the histogram

going from negative to zero. I will take a long trade considering the earnings report anticipated

for July 13rd. For this, I will take a call option trade of ten contracts for the strike of $47.50

expirating 7/14th. On the last trading day, the contract had a low of $0.96 to a high

of $1.54 meaning a one-day increase of 60%. I anticipate a three-day return of

100% and expect the trade to cost about $1.54 x 10 X 100 or $1540 which is also the

profit expectation.
OscillatorsVolumeDALAALairlinesstockearningsplayanchoredvwap
Comments
jaredradosevichffl
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bought some today !!!!
AwesomeAvani
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@jaredradosevichffl, i think this is airborne and might get some altitude with the vacation travel surge and upcoming earnings. I flew on Delta on July 4th cross country and the airports were crowded and the flight was looking for volunteers to get bumped. I am looking for enough profit to pay off the credit card balance from the round trip with the return on July 21st ( $1400). I think the airlines are making so much money they should pay back the taxpayers for the COVID subsidies and some share buybacks to help the price rise. There may be short sellers in this that could accelerate the ride up with buying to cover. Time will tell...
jaredradosevichffl
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@AwesomeAvani, I hope your right I bought DAL and UAL passed on LUV only bc of the issues they had I figured that would be the lowest earnings pop of the 3. I do see all of them beating though!
AwesomeAvani
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@jaredradosevichffl, I hedged my bets with all three. LUV has to have some decent earnings. It realized all its ticket prices and more or less rationed the " fly away" deep discounts-used the price of jet fuel as an excuse just in time for the rollback on spot crude oil. I like to stay sector diversified and the airlines looked like a decent rotation.
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