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.
American Airlines Group Inc. (NASDAQ:AAL) will apply for government assistance as it suffers a drop in demand caused by the COVID-19 pandemic.
What Happened
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The airline expects $12 billion of the total $50 billion in assistance allocated to airlines under the CARES Act. The act was passed by Congress last week and sets out to provide relief for the coronavirus hit economy, reported CNBC.
American’s CEO, Doug Parker, said in a message to his employees, “We intend to apply for these funds and are confident that, along with our relatively high available cash position, they will allow us to fly through even the worst of potential future scenarios.”
American will also offer partially paid leave and early retirement to staff. Employees other than pilots could get 25% of their pay for a leave of one year and will continue to receive medical benefits. Those employees who have been with the airline for more than 10 years can receive half of their pay for 12 months.
Why It Matters
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
Federal funding for airlines under the CARES Act is predicated on airlines giving the government equity stakes, and meeting requirements such as keeping employees on the payroll while maintaining certain air routes.
Airlines in the U.S. have been hit hard by the pandemic. 21,000 Delta Air Lines, Inc. (NYSE:DAL) employees have offered to go on voluntary unpaid leaves of varying lengths.
Delta is also suspending buybacks and deferring $500 million in capital expenditure, as well as halting future dividend payments. Alaska Air Group Inc. (NYSE:ALK) has also suspended its dividend program and cut capacity by 70%.
A leaked memo from Delta indicates that airlines are planning on cutting worker hours irrespective of the protections offered by the CARES Act. United Airlines Holdings Inc. (NASDAQ:UAL) is also following the same course, as is American.
American has reduced its flight schedule by approximately 60% for April and reduce it by 80% for May for May in “light of the record low demand,” according to a video statement made by Parker to employees.
Price Action
American Airlines shares traded 1.88% higher at $12.48 in the after-hours session on Monday. The shares had closed the regular session 12.75% lower at $12.25.
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.