Buy Call JETS

March 6, 2025
Sell a Third of Three Positions: Sell a Third of your SOFI July 16 Calls for $1 or more, a third of your JETS January 26 Calls for $1 or more, and a Third of your MRVL June 115 Calls for $1 or more.

For the past three weeks, the market has been through the ringer, as every sign of hope is quickly washed away, followed by further index and stock breakdowns. While it’s hard to call the selling a true crash, it’s not too far off when you look at many individual stocks.

Because of this nasty market action, we are going to sell pieces of three positions today.

To execute these trades you need to:

Sell to Close a Third of your SOFI July 16 Calls

Sell to Close a Third of your JETS January 26 Calls

Sell to Close a Third of your MRVL June 115 Calls

The biggest loser in this group is MRVL, which is down 18% on earnings today. If you wanted to call the recent market action a crash, the Semiconductor/AI theme in which MRVL plays would be the prime evidence of just how bad the selling has been.

Stepping back, hopefully these sales are a terrible mistake and the market and all three of these stocks soon find their footing again.

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).