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…