TopOptionAlert
Oct 25, 4:16 PM
$DAL NOV20 79C · still actionable
Zone:
$76.24 to
$77.32
Invalidation: close under
$75.33
Objectives:
$79.26, then
$85
The math: up 3.2% to the first objective and 10.7% to the second, against 1.9% risk on the invalidation, better than 5 to 1 to the second.
Dear friend, think of a regular flyer who sees his usual route go on sale after a rough week and books it because the price is back where it usually holds. Delta did something like that on Friday. It fell hard, more than 3 percent, but it never closed under the low it printed that day, and buyers have defended that neighborhood before. This swing is a bet that the drop was a scare, not a break, with room first back to 79 dollars and 26 cents and then toward 85 if the floor holds.
P.S. Friday saw about 5.5 million shares change hands, so the low was tested in a busy session.
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