My partner and I were out of town on business this week. Upon arriving at the airport Friday we found out our flight was cancelled. Nothing new here, lots of weather in Atlanta. However, we were told that there were no flights out until Wednesday morning, 5 Days after our cancelled flight. How is this even possible, how could someone just hang out, pay for a hotel and do nothing for 5-days with no recourse from the airline (AirTran in this case). To add to this, Spring Break was just starting and there were no flights out from any of the surrounding cities within 300 miles.
We decided to rent a car and drive, 1600 miles. Now I don't know what was crazier the decision to drive or the fact that it didn't really bother us that we were about to drive 1600 miles because airlines can schedule flights appropriately and the entire airline sector has been climbing.
Long story short, and there are many twists and turns to our story is 30-hours later we arrived home, oh yeah we had a passenger that was trying to get back to the East Coast as well. Would you just ask two guys if you can drive across the country with them?
So now for the trading idea... Potash (POT) jumped on higher guidance Friday, guided earnings higher for the first quarter. Potash Corp. stated earnings would be in the range of $1.30-$1.50, well above the initial guidance of $0.70-$1.00 per share. The stock soared almost 7% on the day.
This brought Intrepid Potash (IPI) along with it. Acutally IPI jumped 3% higher than POT. With no extra news or guidance from IPI I am looking at ATM puts for April. IPI 31.53 IPI 32 PUTS 2.03 down 1.98 Friday open. Suggest looking when IPI announces next see if this is a good trade set-up for you.
Happy Trading...
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