Best Stock on the Market

Call Spread on ALK on 3/23/2015

Bullish Cup & Handle on ALKAlaska Air Group, Inc. (ALK) provides passengers and cargo air transportation services primarily in the United States.

The company operates through Alaska Mainline and Alaska Regional segments. It serves approximately 100 cities in Alaska, the Lower 48, Hawaii, Canada, and Mexico. As of December 31, 2014, the company’s fleet consisted of 137 Boeing 737 jet aircraft; and 51 Bombardier Q400 turboprop aircraft.

Shares have formed a bullish "cup & handle" and are ready to move higher. Low oil prices along with reduction of excess capacity has helped this stock move higher and set higher prices.

 

52-Weeks Trading Range: $40.69 - $71.40

Last Trade: $68.65

 

 

Trade

  • Buy 1 April $65.00 Call at $4.25
  • Sell 1 April $75.00 Call at $0.35
  • For a net debit of $3.90

Profit/Loss Analysis

  • Breakeven at $68.90
  • Maximum profit is $610.00 at strike of $75.00
  • Maximum loss is ($390.00) at strike of $65.00

Closing Summary

  • Sold 1 April $65.00 Call at $0.00
  • Bought 1 April $75.00 Call at $0.00

Position closed on 4/17/2015 at price of $0.00 with a -100.00% loss in 25 days.

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