Given my Poor Man's Covered Call (PMCC) portfolio is way to heavy tech with TSLA, CRWD and AMZN I was on the hunt for a new play in a different sector.
With the sell off in airlines over the past several months I found a candidate in United Airlines (UAL).
The reason this worked is that the stock surprisingly has decent volatility and good implied volatility on the options.
The stock also had quite the selloff and is at a support level while be pulled far away from the 50 day moving average.
The setup feels like the stock is oversold to me. Maybe it is, maybe it si not, but the scenario works good enough for me.
The chart shows what I was talking about above.
New position is:
Bought to Open the June 2024 38 calls and Sold to Open the 10/13 43 calls. Net Debit of 7.99
We shall see what the next week brings. If we get a nice bounce I can take profit and if not I can roll out the 43s for the weekly income.