This is an airline short idea. Monday needs bearish price movement for this idea to work. The stop is tight as Monday MUST be bearish or the idea is broken. Target can be adjusted if a future decline has strength.
Bullish wedge, IHS
If traded the right way. This setup lines up a possible 6 dollar trade.
$AAL is coming out of a classical bullish falling wedge by breaking falling trendline - after making a bear flag.
Price is now being stopped at dashed trendline setting up a neckline for a possible IHS.
If neckline breaks...
Target will be at the upper trendline....on...
Trade Setup:
-1 AAL May 19 36/41 Short Put Spread @ $1.39
DTE: 57
Max Win: $139
Max Loss: $361 (will manage 2x credit, so $280)
Breakeven: $39.61
Trade Management: 50% profit; 2x credit received as max loss; Will roll out if on the dance floor.
Green is profit zone and up; Vertical black bar is expiration.
This is my thoughts on American Airlines: I think the stock in the long term is a little bullish but also bearish. The stock had been moving up and down for a long time so there is not really a side on the long term, a little bullish but not a lot. As you can see there is a BIG support line (since 2014) where the stock bounced on friday and that bounce is what got...
At $46.3 last in $AAL you are looking at 15% or so in earnings yield using
$1.25 for April 2016
$1.77 for July 2016
$2.80 for October 2016
$0.92 for January 2017
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$6.74 in earnings / $46.3 last for AAL shares
14.55% yield.
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I like how this chart is displaying the earnings at each quarter's "Key Earnings Level" so you can see which...
Demand Zone highlighted in yellow at former resistance a pullback to this level would offer a good r/r trade.
Entry: $45.00
Stop Loss: 43.49
Target: 48
Hi guys,
This will be a nice sell set up when it breaks the daily uptrend. It will either consolidate and break or retest the double top before breakout. Looking for a sell set using your trading strategy is probably a good idea.
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Historically when the Coppock Curve reaches this level, the stock drops an average of 12.9% over the next few weeks. There is no clear bottom based on the current trends, but my conservative drop is to at least 42.50. The bottom could very likely be in the low 30s. The key to a drop below 42.50 could be around the earnings release.
