Anyone shorting UAL here?

Discussion in 'Trading' started by Sysdomatic1, Sep 1, 2002.

  1. They want 9 billion of cost cuts over six years and their unions don't seem willing to give it up; UAL bonds are pricing in a bankruptcy filing (currently trading at less than 30 cents on the dollar.) Odds seem long here that they turn it around in time, and the odds seem pretty good that any value in the common stock will be wiped out. Any thoughts on this one?
  2. Pabst


    Only because it's a Chicago company have I followed it as closely as i do. Always hated flying them. Good chance they're toast. However IMO, shorting the stock naked at these levels is pretty poor risk vs. reward. Maybe a couple of better plays would be, buying some UAL notes on a ratio basis against the common, or buying AMR against UAL. IMO, AMR is a much better run carrier, but is being weighed down by United.
  3. how do you short a stock under 5 bucks like UAL???
  4. Pabst


    synthetically. ie log put short call.
  5. Plenty of brokers allow you to short stocks under $5, Cybertrader, etc.
  6. No. It's too low now. It can and may probably go lower but it's not worth using part of your buying power for it.