| Followers | 680 |
| Posts | 141122 |
| Boards Moderated | 36 |
| Alias Born | 03/10/2004 |
Wednesday, June 02, 2021 2:10:48 PM
There's Plenty of Promise for American Airlines Group (AAL) Stock
By: Schaeffer's Investment Research | June 2, 2021
• Delving into a few reasons American Airlines stock is a smart reopening play
• The stock looks primed for an upward shift in sentiment
Shareholders of airline giant American Airlines Group Inc (NASDAQ:AAL) are preparing for their annual meeting, slated to take place on June 9. The equity recently broke through a technical downtrend, before finding support. And given the fact that the shares are up 100% year-over-year, with a 51.5% rise in 2021 to boot, now looks a great time to purchase AAL calls.
There also seems to be plenty of room for analyst sentiment to improve, as 11 of the 12 in coverage sport a "hold" or worse rating. An unwinding of pessimism from the brokerage bunch could put some wind at the stock's back. Meanwhile, short interest has more than doubled since the start of 2020, and the 84.50 million shares sold short represent a hefty 19% of the stock's available float.
AAL could also benefit from a shift in the options pits. The equity's Schaeffer's put/call open interest ratio (SOIR) of 1.29 stands higher than 84% of readings from the past year. In other words, short-term option traders have rarely been more put biased toward the security.
American Airlines stock boasts attractively priced premium at the moment, too. This is according to its Schaeffer's Volatility Index (SVI) of 43%, which stands higher than just 1% of all other readings over the last 12 months. Our recommended call has a leverage ratio of 5.1, and will double on a 19.9% jump in the underlying security.
Read Full Story »»»
DiscoverGold
By: Schaeffer's Investment Research | June 2, 2021
• Delving into a few reasons American Airlines stock is a smart reopening play
• The stock looks primed for an upward shift in sentiment
Shareholders of airline giant American Airlines Group Inc (NASDAQ:AAL) are preparing for their annual meeting, slated to take place on June 9. The equity recently broke through a technical downtrend, before finding support. And given the fact that the shares are up 100% year-over-year, with a 51.5% rise in 2021 to boot, now looks a great time to purchase AAL calls.
There also seems to be plenty of room for analyst sentiment to improve, as 11 of the 12 in coverage sport a "hold" or worse rating. An unwinding of pessimism from the brokerage bunch could put some wind at the stock's back. Meanwhile, short interest has more than doubled since the start of 2020, and the 84.50 million shares sold short represent a hefty 19% of the stock's available float.
AAL could also benefit from a shift in the options pits. The equity's Schaeffer's put/call open interest ratio (SOIR) of 1.29 stands higher than 84% of readings from the past year. In other words, short-term option traders have rarely been more put biased toward the security.
American Airlines stock boasts attractively priced premium at the moment, too. This is according to its Schaeffer's Volatility Index (SVI) of 43%, which stands higher than just 1% of all other readings over the last 12 months. Our recommended call has a leverage ratio of 5.1, and will double on a 19.9% jump in the underlying security.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
