The airlines industry seems to have found a bottom over the past couple of months while the general market has rallied.
It may be a good idea to start accumulating positions in some of these potential long term value plays before a possible sector rotation into the airlines industry.
Here $LUV broke out of its falling wedge and the pullback gave us:
1) Support of the trendline
2) A higher low
3) Reclamation of the 8EMA and 21 EMA
If it can clear and hold the 200 EMA I will start scaling into medium and long term calls.
Another good indication would be similar plays in other airline stocks such as $JETS, $DAL, $UAL, $AAL et al.
It may be a good idea to start accumulating positions in some of these potential long term value plays before a possible sector rotation into the airlines industry.
Here $LUV broke out of its falling wedge and the pullback gave us:
1) Support of the trendline
2) A higher low
3) Reclamation of the 8EMA and 21 EMA
If it can clear and hold the 200 EMA I will start scaling into medium and long term calls.
Another good indication would be similar plays in other airline stocks such as $JETS, $DAL, $UAL, $AAL et al.
Trade active:
I am using a PMCC strategy where I sell shorter dated calls against my far dated one.
Trade closed: target reached:
My long call is almost reaching expiry. Closed them since my short call is now ITM.