Thanks , Uncle Ho. This one played out superbly. The industry was way oversold, and besides, Jim Rogers likes it. Got in on all of the companies mentioned, and up 15% now on average. Although, part of me wants to balk at holding companies with god awful balance sheets.
Balance sheets might be awful in a bad economy their share price will be hammered. However, since they are so high on the cost curve, as soon as they make a modest profit, I think there should be a bump in valuation.
Still holding out on this one, I'll feel a lot nicer if we could find some strength in the 4's. I am worried about a significant sell-off in the stock market in general, but I don't know if this stock will sell off if that happenned. This is about my only swing trade I have on now. I missed a fill selling puts on ICE when it was in the lower 80's. Balked on selling CME puts when it was at 260. And I'm looking at buying deep in the moneys on BA, but balked when it was 41.50. I will look to do those soon if we can dip a little in the stock market.
Lookin at takin these in here right aound here at 5.00 I want to hold on to them longer, but I got the pop I was looking for, up 35k+ in just about a week, so I might take them in. Any opinions on covering this trade?
I wouldn't cover until I see another rally in oil. They have restructured their other big expense (salary) so as long as oil stays calm airlines wont go down. And summer is vacation season, I say airlines will enjoy a surprisingly good Q3 this year.
I covered the 20k at 5.20 when I got another chance to sell those. Up 36%, $41,500 P&L. Thats how you trade boys.