Our American Airlines (AAL) has started out a bit rough. But I see no reason to exit the trade. I went out to May 2015 with this trade on purpose, knowing very well it would take time for the trade to work out because of oil.
These airline stocks are unbelievably overbought on RSI and MACD alone. They’re all in the nosebleed section of the upper Bollinger Band. They’re wildly over-extended in desperate need of a substantial pullback.
Time decay won’t be a big factor in this AAL trade until we begin to near expiration.
Hold this, and all other open positions. After a steady, strong win streak, we did run into losses. But we see no reason – at this point – to exit anything.
I hope you and your families have a happy, healthy holiday season. Best wishes.
Ian L. Cooper
Forgotten Profits