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Strategies & Market Trends : Calls and Puts for Income

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To: Robohogs who wrote (5165)6/19/2012 7:46:22 AM
From: CommanderCricket  Read Replies (1) of 5891
 
Jon,

I've tried to get my head around LCC and have a mental block of thinking anything positive about an airline. Understand writing put leaps and collecting the IV but concerned about how quickly LCC could sell off in the event of a AMR merger or rapidly rising crude prices again. The shares have been strong and think a pull back is possible. In fact, I've been waiting to short UAL calls again but the share price isn't high enough yet.

May sell a small LCC put position and watch it to get a feel for how they trade.

Appreciate the comments and input.

I like your comment about the financials. Been looking at WFC as they seem to be one of the better managed banks.

Michael
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