December 5, 2024
Buy the U.S. Global Jets ETF (JETS) January 26 Calls (exp. 1/16/2026) for $3 or less.
Somewhat quietly the Airlines (JETS) have been crushing the market of late as United Airlines (UAL) and Delta (DAL) have been racing to new highs, and then in the last two days American Airlines (AAL), Southwest (LUV) and JetBlue (JBLU) have all raised guidance.
This strong stock action in the sector has been accompanied by big call buying activity in the JETS ETF as well as in the stocks above.
And while it’s possible that we may be top ticking a group that has been on a big run, and all the good news may be priced in, given the strength in this group as well as strong option activity and the VERY inexpensive price of calls with a year until their expiration, let’s take a shot that this is just the start of the group getting going.
To execute this trade you need to:
Buy to Open the JETS January 26 Calls
The most you can lose on this trade is the premium paid, or $300 per call purchased.
The risks I see in this trade are pretty straightforward … essentially, the market and the JETS have been on a big run higher, and we may be buying at the top.
That being said, to pay $3 (or less) to have one year of exposure is a ridiculously cheap shot that if it works could turn out to be a home run (like a WMT-type trade where we bought cheap calls in a slow stock that far exceeded expecations).
| Position | JETS January 26 Call |
| Position Strategy | Buy Call |
| Opened Date | December 5, 2024 |
| Expiration | January 16, 2026 |
| Net Price | 3 |
| Strike | 26 |
