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...