http://finance.yahoo.com/news/outag...ness-refunds-vouchers-051141609--finance.html http://stockcharts.com/h-sc/ui?s=DAL This is not the first time this has happened to Delta. I just don't understand it. There are available systems to make data centers fail safe at several levels. 1. RAID redundancy https://en.wikipedia.org/wiki/RAID 2. Uninterruptable Power Supplies (UPS) https://en.wikipedia.org/wiki/Uninterruptible_power_supply 3. Standby Generators https://en.wikipedia.org/wiki/Standby_generator Thirty years ago it was, and still is, standard procedure for critical data centers to equip themselves with all three levels of redundancy so that it would take a nuclear attack to down the data center. My company, which assigned blinded, randomized drug supplies for clinical trials had a completely redundant data center and we made over two million drug assignments over six years without a single failure. What is wrong with Delta?? The only thing I can think of is they have chosen not to spend the money on redundancy. I guess that's a financial decision. This is the bill for that decision and they won't recover from it soon. Trade: With DAL at 37.44 Jan 45/50 bear call spread for a net credit of $54 Yield = 54/446 = 12.1% in 164 days or 26.9% annualized Prob = 82% Expectation = .82(54) - .076(446) - .10(223) = 44.28 - 33.89 - 22.3 = -12 Price.......... Profit / Loss........ ROM % 28.08............... 54.00.............. 12.10% 34.69............... 54.00.............. 12.10% 41.64............... 54.00.............. 12.10% 45.00............... 54.00.............. 10.80% 45.54................. 0.00................ 0.00% 48.59.............. (305.30)........... -61.06% 50.00.............. (446.00)........... -87.90% 55.55.............. (446.00)........... -87.90% 62.50.............. (446.00)........... -87.90% Alternate trade Jan 50/45 bear put spread for a net debit of $428 Yield = $72/428 = 16.8% in 164 days or 37.4% annualized Price.................... Profit / Loss............ ROI % 28.08.......................... 72.00................... 16.82% 34.69.......................... 72.00 ...................16.82% 41.64.......................... 72.00................... 16.82% 45.00.......................... 72.00................... 16.82% 45.72............................ 0.00..................... 0.00% 48.59........................... (287.30).............. -67.13% 50.00........................... (428.00)............ -100.00% 55.55........................... (428.00)............ -100.00% 62.50........................... (428.00)............ -100.00% In the bear call spread you get the cash up front, in the bear put spread you get it at the end. So there may or may not be a margin difference.
Don't short DAL. At least long term. I have no loyalty either way.... but they are a beast. Trust me on this one too. -vz
Delta is now saying that "critical systems and network equipment didn’t switch over to backups. Other systems did. And now we’re seeing instability in these systems." http://www.bizjournals.com/stlouis/...250-flights-tuesday.html?ana=yahoo&yptr=yahoo So they have the systems in place...they just don't work. This is why such systems are drilled (tested) on a regular basis AND why the data center needs to be over-resourced so that parts of the system can drilled without interrupting operations.
Flash in the pan. ADHD prevails. Rightfully so. Bigger picture here. Albeit the way to make a small fortune on Wall Street.... .....is to start with a large fortune and buy airline stocks. Can't argue with the history books I guess.