DAL

O

oldnemesis

http://www.thestreet.com/story/1351...tential-35-upside.html?puc=yahoo&cm_ven=YAHOO

http://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.DAL.NYS

http://finance.yahoo.com/echarts?s=DAL+Interactive#{"range":"2y","allowChartStacking":true}

http://finance.yahoo.com/q/ks?s=DAL+Key+Statistics

Trade:
With DAL at 49.33
Jan '17 35/30 bull put spread for a net credit of $50
Yield = 50/450 = 11.1% in 296 days or 13.7% annualized
Prob = 84.5%
Expectation = .845(50) - .063(450) - .092(225) = 42.25 - 28.35 - 20.7 = -6.8

Price.......... Profit / Loss.......... ROM %
22.50 .............(450.00) ...............-88.90%
30.00............. (450.00)............... -88.90%
30.02............. (448.40)............... -89.68%
34.50.................. 0.00................... 0.00%
35.00................ 50.00................. 11.10%
37.50................ 50.00................. 11.10%
45.00................ 50.00................. 11.10%
55.00................ 50.00................. 11.10%
60.00................ 50.00................. 11.10%

I Spent the Easter weekend on Delta , including twice through Atlanta Airport (Delta hub). Impressive... It's quite an operation. More and more people flying... and low fuel prices are lifting profits. Stock always vulnerable to a bad news event e.g. crash or more terrorist activity shutting down destinations like Paris and Brussels)
 
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oldnemesis said:
Stock always vulnerable to a bad news event e.g. crash or more terrorist activity shutting down destinations like Paris and Brussels)
More...



The DAL 1-year chart doesn't agree with your statement. The red dots represent Paris and Brussels, I see no adverse affect on the stock at all - business as usual.


Screenshot_zpsosrp0j0j.png




:)
 
Paris and Brussels are not super-big Delta destinations...but what would happen to Delta stock if they bombed Atlanta airport?? As has been recently pointed out it's so easy to do... just put a big bomb in a big suitcase and wheel it into the departure lounge.

Atlanta is the busiest airport in the world.

https://www.google.com/?gws_rd=ssl#q=busiest+airport+in+the+world

I fly into Atlanta from Myrtle Beach and when we are taxying to the arrival gate we pass so many Delta planes (hundreds it seems like) plus Delta maintenance facilities where planes receive scheduled maintenance etc. There must be a Delta flight into or out of Atlanta every 3 minutes.

Hmm. Of course I don't really know what would happen if Atlanta were shut down for an extended time but I bet it would not be good.

Before I took off on the first leg of my long weekend of flights I was thinking about all the terrorist activity and how sweet a target Atlanta would make. I am actually hesitant to point it out for fear I put the idea in the wrong little brain.

Luckily nothing happened over Easter for which I am grateful. Actually I was a little disappointed that there was not any apparent increased security in any of the airports I went through. I think that's a mistake. They need to begin screening people going into departure not just going to gates.
 
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I always look with sympathy at the flight crew as they arrive trailing their little luggage carriers and think what life must be like for them. 30 years is a long time to live like that.

It has, I fear, become a part of modern corporate life in general.

When I worked for a major drug company in Philadelphia and then when I had my own consulting business I had to fly around a lot. Boston, San Diego, Salt Lake, London, Paris, Milan, etc. etc. I tried to get people to substitute electronic meetings but they simply wouldn't.

One time I was dispatched by our VP to Paris ASAP and I tried to substitute an electronic meeting. It wasn't received well. I remember my boss pointing his finger at me and saying "when I say I want you in Paris... I WANT YOU IN PARIS...not a little picture of you on a CRT screen" .

I currently live in a development in South Carolina that is filled with retired mid-level executives. Overweight nebbishes tending their gardens, putting out the trash, lounging at the pool... talking of old triumphs. It's interesting how many of them live alone...being divorced long ago when they let their career take precedence over their wives and family. This is the hell they have been assigned to... until it's time for the real one.


It's not worth it.
 
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