Yo Pit Crazies,

I see something stirring in the hospitality industry after a wretched start to 2022.

Airlines and cruise ships are rallying lately.

They use oil, so is the Ukraine crisis going to come to a less than crazy conclusion?  

Maybe they’re trying to tell us something …

Money Is Finding Its Way Back to Airlines

Buying airline stocks feels like an every-few-years thing.  Wait until some global crisis and scoop up the tattered shares of the carriers.

Just after the global COVID crisis is leaving the headlines we have yet another dust up.

This time the problem is sky-high oil prices and passengers hiding under their pillows waiting for the war in Ukraine to be over.

American Airlines Inc. (Ticker: AAL) one-year chart with 30-day IV in red on the bottom.

American Airlines (Ticker: AAL) has rallied a remarkable 25% from the bottom only a week ago.  Before Omicron ruined everything in late November, AAL was a $22 stock.

Perhaps AAL’s climb is an indication that the Ukraine crisis will end sooner rather than later …

Hopefully for the citizens of Ukraine, that is this week.  

The Rundown

Capitol Gains w/ Frank Gregory

Get ready for a long oil trade this week, most likely ExxonMobil Corp (Ticker: XOM).

Power Income Trader

Bill and I added a long iShares Silver Trust (Ticker: SLV) call spread and long SPDR Select Financials ETF (Ticker: XLF) put spread into the rally today as part of Power Gains.

If you’re already a Cap Gains or Power Income trade, call Customer Care from 9 a.m.-5 p.m. ET for special pricing at 1-888-872-3301.

Nitro Trader:

Mark closed three SPDR Dow Jones Industrial Average ETF (Ticker: DIA) March 18 335-340-345 call butterflies closed for a 125% gain

Pro Trading Room:

The Pro Room is Option Pit’s live access to Mark and myself during trading hours. Our Pro students post trade ideas with Mark and me during the entire trading session. 

All Fed yesterday in the Pro Trade Room, but some decent day trades;

I closed a ProShares Ultra short term VIX futures ETF (Ticker: UVXY) strangle for a 28% return.

Jason rode a Nitro Trade to glory:

Volatility Edge & Volatility Trading Club:
The Option Pit VIX Light Is Green, as the market for VIX futures is now flat.

SPX is still going up and down with around 2%+ moves per day. VIX has dropped below 30 and could be on its way to the low 20s this week, so expect a change to Yellow today.

Mark closed a VIX Mar15 5 30/45 call spread & 5 20 puts closed for a 38% gain yesterday in VIX edge.

To Your Trading Success 

AG