27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Delta Air Lines, Inc. (NYSE:DAL) reported Tuesday certain metrics for June that signals the "doom and gloom" thesis for the airliner is not accurate, according to Stephens.
The Analyst
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Stephens' Jack Atkins resumed coverage of Delta with an Overweight rating and $70 price target.
The Thesis
Delta said Tuesday it expects second-quarter revenue per available seat mile (RASM) growth (excluding refinery sales) to be around 3.5%, which is near the high-end of management's guidance of 1.5% to 3.5%. Atkins said management highlighted ongoing solid passenger demand as it realized a monthly record of flying 18.9 million customers in June.
The company also expects its cost per available seat mile (CASM) ex. fuel to be flat to up 1%-2% year over-year in the second quarter, which is consistent with management's guidance.
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Delta's encouraging performance in June should give investors confidence in its ability to sustain RASM momentum throughout 2019. Management is showing success in recent initiatives to drive revenue growth, including premium seating in international flights and improved flexibility for passengers to buy-up into premium seats on domestic flights.
Bottom line, Atkins said Delta is "very well positioned" to realize growth as it sees continued success in not only elevating but monetizing the customer experience.
Price Action
Shares of Delta were trading higher by 1% to $59.17 Wednesday.
Related Links:
Delta's Solid Q2 Guidance Boosts Airline Stocks
The Boeing 737 MAX Has Been Grounded Since March: How Are Airlines Responding?
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.