You’re Grounded! Option Bears Turn On Airlines

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Looking at the chart of UAL, a 61.8% retracement of the recent uptrend is near $39.50. That would have the price testing its $40 breakout level.

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Conclusion

As the holiday season is in full swing, in a COVID-dominated world that may not mean the same thing as it has in past years for the airline industry. This is an unusual period and thinking that these stocks may find themselves retracing seems to be a reasonable assumption. So, if you’re looking for that bearish “stocking stuffer” in your trading account, maybe this is it.

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