JETS weekly from a technical perspective has bullish momentum with QQE buy signals and MACD curling.
Bullish on the weekly close above 21EMA and in a nice volume gap with room up to 26/27 supply zones.
From an options flow perspective, there was a buyer of the 11/19 21C for $2M in premium. I followed and am currently up +77% and still holding with $26PT
If...
Nice clean break of the base - travel sector looks to be gaining some momentum back. Loaded up some calls with a few short term targets between the mid 20s. Weekly looks good too.
The U.S. Global Jets ETF (JETS) provides investors access to the global airline industry, including airline operators and manufacturers from all over the world.
... for a 7.63 credit/contract.
Comments: With max profit in the diagonal around the width of the spread (8.00), closing it here rather than waiting another 21 days for the remaining extrinsic to bleed out and/or risking that price returns to below 24. My cost basis was 6.49/contract (See Post Below). Closing it here results in a realized gain of 1.14...
... for a .36/contract credit.
Comments: This is the short leg of a long call diagonal, the long leg of which is out in March of '22. (See Post Below). There isn't a ton of extrinsic left in the September 17th 24, so rolling it here. Cost basis in the setup is now 6.85/contract - .36 = 6.49 with a break even at 22.49. I'm hanging out for a decisive break of...
Global Jets ETF $JETS was the stand out sector today up 1.91% on strong volume.. the chart is looking interesting.. after being marked down throughout summer there appears to be a double bottom confirming with a RSI divergence, there is also a steep left sided skew.. to take advantage of this we’re looking at a NOV’19 $20/26 risk reversal for a credit of $0.06...
This is the first month I'm breaking up my trades into 2 tracks to spread risk and provide myself with more room to navigate depending on the market situation.
I'm back bullish in JETS as it seems like the US is taking the virus in it's stride, even with Delta cases rising fast. Any virus precautions and restrictions while limiting are not new to business owners...
* -- long call diagonal ... for a 6.85/contract debit.
Comments: I wasn't entirely satisfied with what I would be getting paid for my go-to strategy of selling short puts in this, so doing something a little more directional here. Buying the back month 89 delta, selling the front month 37 here and paying 6.85 for an 8-wide with a max profit metric of 1.15...
Long setup
-fake brake of channel
-strong support + 50% and 36% fibo levels
-reflection from low channel bound
-ABC correction is over?
-fundamentally: pandemic is over soon, economy is opening, people will travel again
Upwards channel looking to continue trending as long as major support does not break. Sights of bullish trend reversal coming up. Breaks above minor channels shown will confirm my thesis. Aligns well with my BA analysis.
Recently we've seen a significant "rotation" in markets toward large cap tech and defensives, and away from small caps, financials, and transportation. In this post, I will describe the rotation through a series of charts, and I will also suggest some explanations for what's going on. The long and short of it is that I think we've just witnessed a regime change,...
Arca
