United Airlines (UAL) is up more than 5% today following the release of the company’s first-quarter earnings announcement. The airline reported a loss, but management forecasted it would deliver a profit in Q2. We sold our shares on Monday to avoid earnings risk. In hindsight, holding them through the announcement would have resulted in shares…
United Airlines (UAL) is giving up early gains today heading into tomorrow’s earnings announcement. Let’s sell our uncovered shares to avoid earnings risk. I will recommend a put following the announcement to take advantage of elevated premiums post earnings and reduce our net debit on the position. Current Stock Price: $41.91 Cost Basis: $47.57 Action:…
Our United Airlines (UAL) call is on track to expire worthless. With the company scheduled to report earnings on Tuesday, we will either sell shares ahead of the announcement to avoid earnings risk or hedge the position with a protective put. Current Stock Price: $41.81 Cost Basis: $47.57 Action: Watch UAL Apr Week Two (4/14)…
We held off on selling a call on United Airlines (UAL) last week as the stock was running up. It closed the week 7% higher, bringing shares closer to our cost basis. With the stock pulling back today, we have an opportunity to sell a call to generate income and reduce our cost basis on…
Our final Income Madness position is vexing us. The United Airlines (UAL) Mar Week Four (3/24) 49 Put is deep in the money after falling more than 20% since we entered the position. The company surprised the Street when it warned of a first-quarter loss, citing weaker demand and higher fuel costs. The news hit…
We rolled our Airbnb (ABNB) put to buy time for shares to recover, and our strategy has worked well. Let’s close the position now with a small loss rather than risk a downside reversal before expiration. Current Stock Price: $123.47 Cash in Hand: $2.73 Action: Buy to close the ABNB Mar Week Four (3/24) 125…
United Airlines (UAL) sold off this week after the airline forecast a first-quarter loss, citing weaker demand and higher fuel costs. This obviously came as a surprise to me and the market, as the company’s earnings report is not expected for another month. Our put is deep in the money. Let’s roll it now to…
I am recommending we exit our SPDR S&P Regional Banking ETF (KRE) and Block (SQ) puts with modest profits rather than risk another market reversal before expiration. KRE Mar Monthly (3/17) 42 Put Current Stock Price: $45.46 Cash in Hand: $0.34 Action: Buy to close the KRE Mar Monthly (3/17) 42 Put for around $0.16,…
Airbnb (ABNB) is rallying today but our put remains in the money. I am recommending we roll it out a week to avoid assignment and buy time for the stock to recover. Current Stock Price: $117.72 Cash in Hand: $2.23 Action: Buy to close the ABNB Mar Monthly (3/17) 125 Put for around $7.70 Sell…
Let’s book profits on our VanEck Semiconductor ETF (SMH) bull put spread, earning a 3.2% return in three days, or 389% annualized. Current Stock Price: $246.57 Cash in Hand: $0.22 Action: Buy to close the SMH Mar Monthly (3/17) 232.50 Put for around $0.10 Sell to close the SMH Mar Monthly (3/17) 227.50 Put for…
