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.
There's a lot to like going forward with Delta Air Lines, Inc. (NYSE:DAL) and Southwest Airlines Airlines Co (NYSE:LUV), according to Bank of America analyst Andrew Didora.
“We estimate core industry RASM (ex-Easter shift) can remain steady through year end, but 3Q will likely be better for those with declining capacity and easier comps (LUV, DAL). We maintain our positive view on the group as margins expand and valuations are in line with historical ranges,” Didora said.
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!
Didora maintained his Buy rating on both Delta and Southwest Airlines, but with a couple changes in price targets: Detla up from $64 to $71 and moved Southwest from $62 to $75.
3 Growth Catalysts
Didora expects steady growth in second half of 2017, and key demand indicators (PMI, Leading Economic Indicators, BofA credit/debit card data) all seem to be in solid shape.
While some believe low fuel prices could lead to an increase in capacity, Didora doesn't think this is the case.
“In our view, fuel prices would have to fall below $40 for a sustained period of time before any changes in the US airlines’ capacity plans would occur,” he said.
Didora raised his estimates and price objectives as lower fuel costs should help drive margins.
Related Links
Delta, CME Group, Starbucks: Fast Money Picks For May 26
Southwest Airlines To Consolidate Cuba Service With Focus On Havana
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.