Rocket Trading Update DAL 01-13-21
New Trade - DAL Put Credit Spread
Selling a $40-$39 DAL Jan 15th Put Credit Spread for $0.25 credit. This expires Friday. Our max profit is $25 per contract if DAL stays above $40 as of Friday's close. Our max loss is $75 per contract if DAL closes below $39 Friday. DAL has earnings tomorrow morning.
Sell Jan 15th DAL $40 Put
Buy Jan 15th DAL $39 Put
We are absorbing the $0.25 of premium in Delta from $40 to $39. If it never makes it into that range before Friday then we pocket the premium, if it does trade through that area then we're responsible for the other side.
President elect Biden will also announce his plan tomorrow which could put a bid in airlines. The market knows how bad things are in the airline business right now, I don't imagine there are many massive downside surprises they could announce tomorrow morning for their earnings.
Sell Jan 15th DAL $40 Put
Buy Jan 15th DAL $39 Put
We are absorbing the $0.25 of premium in Delta from $40 to $39. If it never makes it into that range before Friday then we pocket the premium, if it does trade through that area then we're responsible for the other side.
President elect Biden will also announce his plan tomorrow which could put a bid in airlines. The market knows how bad things are in the airline business right now, I don't imagine there are many massive downside surprises they could announce tomorrow morning for their earnings.
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