Bankruptcy Alert – American Airlines
Trade the Close with Me & Kenny
Together, we’re going to look at options on UVXY…
SPX expiration…
And earnings as we head into the close.
We’re calling it 10X Trades: The Friday Close. And this hour is your last chance to make money off the market this week.
The bromance is live and in action – add this event to your calendar now:
Thursday-Friday-Monday Slam Impending
On top of that, Amazon posted record-breaking earnings of $137.4 billion in revenue for the fourth quarter.
But despite this double-whammy of positive news, my VIX light is still yellow.
The market needs to work its way through today’s odd jobs report and AMZN earnings before it makes a decision up or down.
Ever heard of the Thursday-Friday-Monday slam?
Thursday’s bad…
Friday is worse…
And then Monday, we crash.
Right now, we’re on track to see that pattern. And if today is a nightmare, and the VIX’s wild moves take us into higher volatility, then Monday could be UGLY.
American Airlines Could Be
Headed to Bankruptcy
This morning, AAL opened at $16.27. So why is this big-money trader spending $2.2 million on a bet that the airline is heading down to $10, $5, or lower?
Is AAL heading for bankruptcy? These types of trades tell us that bond traders are worried…
And you should not be going long AAL anytime soon.
Making Amazon Options Cheap
- Amazon.com Inc. (Nasdaq: AMZN)
AMZN blew the doors off of earnings – and the biggest retailer in the U.S. could be looking to make a run at $3,200 today.
Look, AMZN is pretty hard to trade. It’s got a four-digit price tag, after all.
But the cornerstone of my earnings trading strategy is cheap options.
And this is the post-earnings pattern that could even make AMZN options affordable.
- Energy Transfer LP Unit (NYSE:ET)
ET has been undervalued and has a nice dividend – and I think it’s heading to $11 a share from here. So, I’m looking at the ET February 18 $10.50 calls.
- Ford Motor Co. (NYSE:F)
F got smoked after reporting a significant earnings miss – and the stock is down more than 10% on the day as I type.
If F can find a floor at some point today, it could make a run back above $18.50 – and I might look to buy some lottery calls.
Mark Sebastian
Founder, Profit Takeover
Comments
One response to “Bankruptcy Alert – American Airlines”
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February 04 2022
Thanks for the interesting ideas, will track…