http://finance.yahoo.com/news/outag...ness-refunds-vouchers-051141609--finance.html
http://stockcharts.com/h-sc/ui?s=DAL
This is not the first time this has happened to Delta. I just don't understand it. There are available systems to make data centers fail safe at several levels.
1. RAID redundancy
https://en.wikipedia.org/wiki/RAID
2. Uninterruptable Power Supplies (UPS)
https://en.wikipedia.org/wiki/Uninterruptible_power_supply
3. Standby Generators
https://en.wikipedia.org/wiki/Standby_generator
Thirty years ago it was, and still is, standard procedure for critical data centers to equip themselves with all three levels of redundancy so that it would take a nuclear attack to down the data center.
My company, which assigned blinded, randomized drug supplies for clinical trials had a completely redundant data center and we made over two million drug assignments over six years without a single failure.
What is wrong with Delta??
The only thing I can think of is they have chosen not to spend the money on redundancy. I guess that's a financial decision. This is the bill for that decision and they won't recover from it soon.
Trade:
With DAL at 37.44
Jan 45/50 bear call spread for a net credit of $54
Yield = 54/446 = 12.1% in 164 days or 26.9% annualized
Prob = 82%
Expectation = .82(54) - .076(446) - .10(223) = 44.28 - 33.89 - 22.3 = -12
Price.......... Profit / Loss........ ROM %
28.08............... 54.00.............. 12.10%
34.69............... 54.00.............. 12.10%
41.64............... 54.00.............. 12.10%
45.00............... 54.00.............. 10.80%
45.54................. 0.00................ 0.00%
48.59.............. (305.30)........... -61.06%
50.00.............. (446.00)........... -87.90%
55.55.............. (446.00)........... -87.90%
62.50.............. (446.00)........... -87.90%
Alternate trade
Jan 50/45 bear put spread for a net debit of $428
Yield = $72/428 = 16.8% in 164 days or 37.4% annualized
Price.................... Profit / Loss............ ROI %
28.08.......................... 72.00................... 16.82%
34.69.......................... 72.00 ...................16.82%
41.64.......................... 72.00................... 16.82%
45.00.......................... 72.00................... 16.82%
45.72............................ 0.00..................... 0.00%
48.59........................... (287.30).............. -67.13%
50.00........................... (428.00)............ -100.00%
55.55........................... (428.00)............ -100.00%
62.50........................... (428.00)............ -100.00%
In the bear call spread you get the cash up front, in the bear put spread you get it at the end. So there may or may not be a margin difference.
http://stockcharts.com/h-sc/ui?s=DAL
This is not the first time this has happened to Delta. I just don't understand it. There are available systems to make data centers fail safe at several levels.
1. RAID redundancy
https://en.wikipedia.org/wiki/RAID
2. Uninterruptable Power Supplies (UPS)
https://en.wikipedia.org/wiki/Uninterruptible_power_supply
3. Standby Generators
https://en.wikipedia.org/wiki/Standby_generator
Thirty years ago it was, and still is, standard procedure for critical data centers to equip themselves with all three levels of redundancy so that it would take a nuclear attack to down the data center.
My company, which assigned blinded, randomized drug supplies for clinical trials had a completely redundant data center and we made over two million drug assignments over six years without a single failure.
What is wrong with Delta??
The only thing I can think of is they have chosen not to spend the money on redundancy. I guess that's a financial decision. This is the bill for that decision and they won't recover from it soon.
Trade:
With DAL at 37.44
Jan 45/50 bear call spread for a net credit of $54
Yield = 54/446 = 12.1% in 164 days or 26.9% annualized
Prob = 82%
Expectation = .82(54) - .076(446) - .10(223) = 44.28 - 33.89 - 22.3 = -12
Price.......... Profit / Loss........ ROM %
28.08............... 54.00.............. 12.10%
34.69............... 54.00.............. 12.10%
41.64............... 54.00.............. 12.10%
45.00............... 54.00.............. 10.80%
45.54................. 0.00................ 0.00%
48.59.............. (305.30)........... -61.06%
50.00.............. (446.00)........... -87.90%
55.55.............. (446.00)........... -87.90%
62.50.............. (446.00)........... -87.90%
Alternate trade
Jan 50/45 bear put spread for a net debit of $428
Yield = $72/428 = 16.8% in 164 days or 37.4% annualized
Price.................... Profit / Loss............ ROI %
28.08.......................... 72.00................... 16.82%
34.69.......................... 72.00 ...................16.82%
41.64.......................... 72.00................... 16.82%
45.00.......................... 72.00................... 16.82%
45.72............................ 0.00..................... 0.00%
48.59........................... (287.30).............. -67.13%
50.00........................... (428.00)............ -100.00%
55.55........................... (428.00)............ -100.00%
62.50........................... (428.00)............ -100.00%
In the bear call spread you get the cash up front, in the bear put spread you get it at the end. So there may or may not be a margin difference.
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