Selling Premium in Airlines

$JETS $DAL $UAL $AAL

Airlines had a nice run, but are entering a seasonally weak part of the calendar. Nonetheless, there’s opportunity as many of the names have elevated implied volatilities.

A chart of the airlines ETF JETS 0.00%↑ -

Seasonality for JETS 0.00%↑ since inception -

I’m using this opportunity to sell call spreads. The market is already in a precarious spot for various macro reasons, and history suggests that appreciation in airline names is not a favorable bet over the next few months. Using elevated vol to create income.

$DAL, $AAL, and UAL 0.00%↑ all stand out as opportunities, with implied volatility values over 50% currently.