Hey folks
I purchased 5 AC Calls Expiring in January of 2021 at a strike price of $20.
I am bullish on AC for that time period. The share price had already reached $20 in June! its not unspeakable that it can reach $20 again or even hover well above it prior to January 2021.
In terms of technical, AC has constantly bounced back to the upside when it reached the high $15 mark. It recently in the last 2 weeks bounced of the 15.60 and 15.99 marks. This is giving me confidence that there is good support. If it falls below the support level, I will re-consider my trade. Otherwise, I have confidence in it.
All that needs to happen between now and January is one or a few good things in short order, the share price can soar. I am betting that between now and January, the CDN and US gov will allow travel between those two conuntrys. Once that happens, there will be left off. I dont see Canada keeping the border closed that far out. The COVID cases in the US is declining and this is true here in Canada as well.
Some other good news such as re-opening, more travel abroad, etc will get lift off. Also, anytime now, if there is a bubble in the tech or gold stocks (when people get sober), money will turn into other areas of the economy which includes airlines and aerospace.
Buying the Call options at such time that the share price is declining towords its support gives you a better bargain on the call options. You need to have patience for this trade.
Good luck folks!
I purchased 5 AC Calls Expiring in January of 2021 at a strike price of $20.
I am bullish on AC for that time period. The share price had already reached $20 in June! its not unspeakable that it can reach $20 again or even hover well above it prior to January 2021.
In terms of technical, AC has constantly bounced back to the upside when it reached the high $15 mark. It recently in the last 2 weeks bounced of the 15.60 and 15.99 marks. This is giving me confidence that there is good support. If it falls below the support level, I will re-consider my trade. Otherwise, I have confidence in it.
All that needs to happen between now and January is one or a few good things in short order, the share price can soar. I am betting that between now and January, the CDN and US gov will allow travel between those two conuntrys. Once that happens, there will be left off. I dont see Canada keeping the border closed that far out. The COVID cases in the US is declining and this is true here in Canada as well.
Some other good news such as re-opening, more travel abroad, etc will get lift off. Also, anytime now, if there is a bubble in the tech or gold stocks (when people get sober), money will turn into other areas of the economy which includes airlines and aerospace.
Buying the Call options at such time that the share price is declining towords its support gives you a better bargain on the call options. You need to have patience for this trade.
Good luck folks!