Weekend updates

The airline index is up over 150% and after the latest terror attempt the sector has taken a hit today. LCC is back below 5 in the after hours. How I plan to play this... I plan an

US Airways (LCC) + C

LCC skyrocketed Tuesday on the overall upgrade and positive sentiment of the Airline Sector. I took advantage of this and sold calls on my shares locking in profits if the rally holds. The volume on Tuesday was over double the average and LCC still has a some noticeable short interest. It pulled back Wednesday only to recover and hold good support over 5 and is now showing a good base in the 5.30+ range. Volume would technically support the new base but the short interest is in the back of my mind on this one. That and the expectations for LCC is still to be less bad in 2010 but still posting a loss.

If you are a long investor this looks like a good play, I think in 2011 if this is in your portfolio it will be a great value play and you can sell OTM calls on it while holding, especially if you go out 3 months or if you are happy with some extra cash you can look at the 11 and 12 LEAPS.

I have also been picking up some CITIGroup (C) since their offering...

Happy Trading...

Airlines

I got turned on to the Airline Industry recently out of a greedy trade. However it was not a sector I ever watched even though I fly several times a month. The airline sector has been perform steadily well over the past few weeks. This is due in part to positive results in travel on some of the major airlines, as well as less bad on others. Also, the decrease in oil has helped tremendously. This along with solid analyst upgrades and recommendations to inluce solid profitability by 2012 has made most of the major airlines a strong long-term value play. UAL, LCC, CAL, DAL and AMR to name a few big players...

I would keep an eye on these and consider some covered calls if you decide to buy long. There are bound to be dips over the long-run and buying back the calls on down days may be a good way to build some cash reserves.

Happy Trading...

MDOR is Steadily Rising

MDOR.OB. Closed at 1.68 today. .20 higher than when I mentioned this in October and over .70 from August when I started watching this. I like the slow growth. It is not being pumped or dumped. Volume has been very good on strong up days. News is also positive and even though PR has been paid for the news is actually news and not just hype. I still see strong potential for this company over the long-term. Apparently they are supposed to be on CNBC next week. Let's see what they have to say and if there is a short term pop.

Happy Trading