We are in the midst of another COVID-19 variant, and the expected winter wave. This has resulted in a selloff in sectors that thrive on human participation, namely airline & casino stocks. When we look at the airlines sector, Southwest ($LUV), United ($UAL), American Airlines ($AAL), and Boeing ($BA), we can see that all four are near the lows of the year:
AAL 52 week low is $16.15, 12/16/21 price is $16.75
BA 52 week low is $188.00, 12/16/21 price is $192.66
UAL 52 week low is $38.88, 12/16/21 price is $40.80
LUV 52 week low is $39.33, 12/16/21 price is $40.00
In the first few months of 2021, we saw a rally across the board in the S&P 500[1], the airline sector and the casino sector, which was in line with the world opening back up again, at least temporarily.
I like the idea of getting long on any (or all) of the airline stocks at this point, as I believe we will eventually revert back to “normalcy” as we continue to combat COVID-19 and its variants. There may be some…turbulence…along the way, but these stocks could see a nice bump in price if we see COVID-19 cases subside.
--- Written by Mike Butler, Host of Options Trading Concepts LIVE, tastytrade
DailyFX[2] provides forex news and technical analysis on the trends that influence the global currency markets.
