/biz/ - Business & Finance

>BGS
I did not double down
(but I was tempted)
why did it dump so much

>>16909586
wait hol up
I want to clarify, you are talking about selling puts *after* they report earnings and get wacked?
My opinion, you have to be careful with that kind of trade.
Firstly the current level of MAXX groundings should be priced in somewhat...
Second, if multiple airlines drop after earnings, momentum might keep them going down/sideways until the trend reverses. So throwing some short puts into the mixx might not be free money, if you are writing mid durations/close strikes to get premium.
just my thoughts on it

only other thing that I can think of in regards to airlines is the Chinese (Wuhan) disease screening thing could cause some small measure of FUD. It's been in the news recently.