Call Spread on AAL on 3/17/2015

American Airlines Group Inc. (AAL), formerly AMR Corporation, operates in the airline industry.

The Company's principal subsidiary is American Airlines, Inc. (American) and US Airways  As of December 31, 2014, the company operated 983 mainline jets, as well as 566 regional aircrafts through regional airline subsidiaries and third-party regional carriers. It serves 339 destinations in 54 countries. As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.

Shares have formed a bullish "double bottom" (helped by lower oil prices) and stock price has moved above stock's 50-day moving average.  Note that  American Airlines Group (AAL) will replace Allergan (AGN) in the S&P 500 after the close of trading on Friday, March 20. S&P 500 constituent Actavis (ACT) is acquiring Allergan in a transaction expected to be completed on March 17. The additin to the S&P 500 will create new demand for shares as funds that mimic the S&P 500 Index will be now required to buy AAL shares!

52-Weeeks Trading Range: $28.10 - $56.20

Last Trade: $53.00

Trade Buy 1 April $52.50 Call at $2.65 Sell 1 April $57.50 Call at $0.75 For a net debit of $1.90 Profit/Loss Analysis Breakeven at $54.40 Maximum profit is $310.00 at strike of $58.00 Maximum loss is ($190.00) at strike of $52.00 Closing Summary Sold 1 April $52.50 Call at $0.00 Bought 1 April $57.50 Call at $0.00

Position closed on 4/17/2015 at price of $0.00 with a -100.00% loss in 31 days.

Back to Portfolio