Advice on these calls...$CCL, $AAL, etc

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up300konngz

Im wondering...if there is any reason....one shouldnt consider buying 2022 calls for $AAL and $CCL? Theyre pretty cheap.

the $CCL 15CALL Jan '22 is $8 a share.
the $AAL 13CALL Jan '22 is $5 a share.

I wish I knew about options before. I would be rich b/c I wouldve got so many options during the crash. But anyway...is there any reason...this could turn out bad? I dont see why either of these stocks could go backwards. But maybe you guys w/more experience might know something I dont?
 
Yes, the reason not to buy is that those shares are cheap. There are many smart people and large investors that don't want to pay more, so if they have concerns then you should have the same concerns. The concerns/fears/risks are usually priced into shares (except for hyped companies and tech), so the price is actually neither cheap or expensive.

As for what may happen, the same that happened to Hertz (HTZ).
Many airlines already went through bankruptcies in the past to protect themselves from creditors, which sometimes made the shares worthless and wiped out shareholders:
https://www.investopedia.com/ask/answers/06/bankruptpublicfirm.asp
 
up300konngz said:
Im wondering...if there is any reason....one shouldnt consider buying 2022 calls for $AAL and $CCL? Theyre pretty cheap.

the $CCL 15CALL Jan '22 is $8 a share.
the $AAL 13CALL Jan '22 is $5 a share.

I wish I knew about options before. I would be rich b/c I wouldve got so many options during the crash. But anyway...is there any reason...this could turn out bad? I dont see why either of these stocks could go backwards. But maybe you guys w/more experience might know something I dont?
More...

Longer term charts show both CCL and AAL going down. So, chances are good that CCL and AAL is bound to go down in the next year atleast, maybe, even the year after. Remember, the airline and cruise lines are taking a huge hit with people losing jobs, fear of Corona Virus, hassle of going to different countries and being locked up in quarantine in addition to other problems. Layoffs of pilots and flight attendants in the thousands should tell you a lot as well as cruise ship line employees who fired most of their employees. Cheap is relative and smarter people know better. If you think you struck gold, probably, not. Otherwise, the hedge funds with their hundreds of millions would be buying hand over fist.
 
up300konngz said:
Im wondering...if there is any reason....one shouldnt consider buying 2022 calls for $AAL and $CCL? Theyre pretty cheap.

the $CCL 15CALL Jan '22 is $8 a share.
the $AAL 13CALL Jan '22 is $5 a share.

I wish I knew about options before. I would be rich b/c I wouldve got so many options during the crash. But anyway...is there any reason...this could turn out bad? I dont see why either of these stocks could go backwards. But maybe you guys w/more experience might know something I dont?
More...

You would have been rich if you knew about options a few months ago. You clearly know enough.
 
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