JETS Ready to Breakout!!If you have been playing the return of tourism, then you have likely done well already. Really, only the airlines have lagged as the rest of the sector has been making higher highs. So, earlier in the year tagging onto JETS, which is an airline exposed ETF, we did well being late to the rush. Now still holding long, we are ready for a breakout and profit targets to come if and when it does. If this high cannot break, we hold still.
JETS trade ideas
JETS daily - a swing trade candidateLooks like it is about to break out and go above 50 DMA. The plan is to buy the breakout, and target $5 to $10 gain a share in about 2 weeks. Set a stop around $14.50 and be comfortable with about $2 loss a share if the trade did not go as expected. Overall feeling is the trade is favorable once breaking out, as MACD is above 0 and RSI is above 50.
JETS bullish outlook. Daily chart on JETS looks bullish to me. With the stimulus package pretty much passed airlines and airports will get a good amount of money. Mix that with vaccines starting to be made more available and perhaps going back to some normacy in the world i expect this to run up nicely.
Air Line ETF "JETS" 80% domestics 20% international
Top JETS Holdings
Company Name (Ticker) Percent of JETS Assets Description of Company
Southwest Airlines Co. (LUV) 10.3% Low-cost carrier
Delta Air Lines Inc. (DAL) 10.0% Domestic and international
United Airlines Holdings Inc. (UAL) 9.6% Domestic and international
American Airlines Group Inc. (AAL) 8.6% Domestic and international
Cargojet Inc. (CJT) 4.6% Canada-based air cargo services company
Allegiant Travel Co. (ALGT) 4.2% Low-cost carrier
JetBlue Airways Corp. (JBLU) 4.1% Low-cost carrier
Alaska Air Group Inc. (ALK) 3.8% Domestic airline
Air Canada (AC:TSE) 3.7% Canada-based domestic and international airline
SkyWest Inc. (SKYW) 3.6% Domestic and international
JETS ETF Bullish inclined naked Puts - 19 Mar expiryAs the Primary trade, this is aligned to the larger market direction and is deemed less risky. I'm bullish inclined for JETS as it is considered one of the COVID19 recovery sectors. The strike is also at a resistance point of the range
Overall the market seems to be bullish especially after the US inauguration.
Sold 200 Puts @ 0. 36 Strike 21
BP block: 48k
Max gain - est $7057.54 (Minus comms)
Once my Feb JETS options expire, I will add on to this position
Time to take flight? #stocksThe one sector that has continue to lag is the airlines but that may be starting to change. We have consolidated near the high end of the range (rectangle)for over a month and it appears the sector wants to breakout. If we can clear the downtrend line and hold the 21.40 recent lows then the sector could get back some of the enormous Covid losses. Vaccines and broader reopening's should only be a tailwind.
JETS ETF Bullish inclined naked Puts - 19 Feb expiryAs the Primary Trade is this aligned to the larger market direction and is deemed less risky. I'm bullish inclined for JETS as it is considered one of the COVID19 recovery sectors.
More vaccine news and it's potential positive speculation could start increasing it's frequency, resulting in traders trying to capitalize on it by entering sectors previously hit hard by COVID19
Sold 140 Puts @ 0.40, Strike 19
BP block: 27k
Max gain - est $5600
JETS updated count, target remains 10B wave should have a 3 wave count, and not a 5 wave count, alternate possibility if it was a 5 wave count, is that this was a wave 1 in place, and we get a wave 2 pullback.
Disclaimer: The proceeding content is informational only and based on information available when created. It is not an offer or a solicitation nor is it tax or legal advice. It does not consider your financial circumstances and objectives and may not be suitable for you.
Copyright Rohan Karunaratne 2020
JETS potential for retest of lows made earlier in MarchWe did not have a clear B wave structure on our way down during Feb, and currently we have a leading diagonal for the bounce off those lows. We could get another move to the downside for the wave 2 pullback, or potentially, this was just a B wave, and price turns lower to retest the March lows. Either way, poses a decent opportunity for recovery after the correction during and after 2021.
Disclaimer: The proceeding content is informational only and based on information available when created. It is not an offer or a solicitation nor is it tax or legal advice. It does not consider your financial circumstances and objectives and may not be suitable for you.
Copyright Rohan Karunaratne 2020
Airline etf year in review: O $30.78 H $32.36 L $11.25 C <=>$22Airline etf year in review:
O $30.78
H $32.36
L $11.25
C <=> $22
Do your own due diligence, your risk is 100% your responsibility. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Small incremental steps work : If you double a penny a day for a month it = $5,368,709. Good luck and happy trading friends...
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JETS ETF Bullish inclined naked Puts - 18 Dec expiryDecember's Primary Trade
As the Primary Trade is this aligned to the larger market direction and is deemed less risky. I'm bullish inclined for JETS as it is considered one of the COVID19 recovery sectors. The 9 Nov vaccine and US election news cause a significant gap upwards.
Vaccine news as we near 2021 could start increasing it's frequency, resulting in traders trying to capitalize on it by entering sectors previously hit hard by COVID19
Sold 140 Puts @ 0.17, Strike 17
BP block: 25k
Max gain - est $2380
JETS ETF Bullish inclined naked Puts - 22 Jan expiryAs the Primary Trade is this aligned to the larger market direction and is deemed less risky. I'm bullish inclined for JETS as it is considered one of the COVID19 recovery sectors.
More vaccine news and it's potential positive speculation could start increasing it's frequency, resulting in traders trying to capitalize on it by entering sectors previously hit hard by COVID19
Sold 120 Puts @ 0.30, Strike 19.5
BP block: 28k
Max gain - est $3600
Jets with good risk reward ratioThis is one of the industries mostly beaten down by pandemic. As we have now positive news about vaccination I think this industry due upside. Another bullish sign as per technical 20MA cross above 50MA and 50M above 200MA. Most of the airline stock ticker has a similar chart pattern. As per chat setup, this has a good risk-reward ratio. Play strategy
- Buy around 22.06 which is the nearest support. Stop-loss 20.56.
- Potential target 29.25 where the gap
- P:L = 32:6
JETS flagging on new channelTechnical Analysis
On november 24th, JETS broke out above its june highs, and consolidated (orange square), demonstrating a successful break out of the channel. Now it shows a flag, showing potential for more upside.
There is a strong resistance level at $27.7; at this point I would expect a pullback, to ultimately reach the top of the gap around $30.
I am using a stop under the 10sma to take partial profits.
Fundamental Analysis
The market is a forward looking mechanism, with the path of the recovery setting a potential comeback for Airlines for Spring; JETS is fundamentally undervalued right now.
Air travel picking back up. Chart looks bullish on jets. With travel being a bit high but not close to normal levels JETS could see a short uptrend. With the vaccine news JETS will be a good play in my mind once things go back to normal. Hearing vaccine will be available to the public sometime late spring of next year. Will wait for the price to go down to 20 to add more to my position.
Bullish with positive news of Vaccine.Seems like Airline travel could start to pick up with the positive news of the Vaccine. Got in around 17 dollars earlier in the year, and will look to increase my position slowly going to the new year. Dont expect it to stay at this level as cases are going back up here in the U.S. Either way once we get back to some normacy i expect air travel to pick up again.