Here's Why United Was Just Named America's Worst Airline
The Smart 401(k) Rollover Option That Almost Everyone Forgets
Expedia (EXPE - option chain) shares are rising today after AMR Corp. (AMR) said it has reached an agreement with EXPE that will allow Expedia to offer American Airlines and American Eagle flights on its website. Expedia had pulled AMR fares from its site in December after AMR began pushing the use of direct links to its own sites. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on EXPE.EXPE opened this morning at $23.50. So far today the stock has hit a low of $22.74 and a high of $23.55. As of 12:05, EXPE is trading at $23.11 up 0.68 (3.0%). The chart for EXPE looks bullish and S&P gives EXPE a positive 5 STARS (out of 5) strong buy ranking.
For a bullish hedged play on this stock, I would consider an October bull-put credit spread below the $19 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 17.6% return in seven months as long as EXPE is above $19 at October expiration. Expedia would have to fall by more than 17% before we would start to lose money. Learn more about this type of trade here.
EXPE has not been below $19 since July and has shown support around $21.50 recently.
Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in AMR. He does control a bullish hedged position in EXPE.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
Reader Comments (Page 1 of 1)
4-23-2011 @ 12:55PM
asfgdfg said...
◎★◎i very like web==lets go◎★◎
believe you will love it.
====( w w w )(okeynice)( c o m )
BEST QUALITY GUARANTEE!!(S H 0 E S )
4-24-2011 @ 10:28AM
aadsdsff said...
Good news: this website (======= http://www.okeynice.com=======)
we has been updated and add products and many things they abandoned
their increases are welcome to visit our website. Accept cash or
credit card payments, free transport. You can try oh, will make you
satisfied.
( http://www.okeynice.com )