Wow how the might have fallen. Upon the crash in crude oil prices, Alaska airlines precipitously ran from just over $10 to over $30 in just over 6 months! It had been a great long pick, but, all things must come to an end, and Alaska’s bull run is indeed over.
I typically don’t like trading the same equity over and over again, but this trade is just too juicy. I have been watching ALK fall like a ton of lead bricks, and yesterday, once it broke below Friday’s low of $23.07 I knew the stock was off to the races.
The Trade
Yesterday I picked up 1/2 of a position in ALK (220 shares at just over $5k) @ $22.73. I’m looking for ALK to easily test it’s July 08 and October 08 resistance around $14.31. Therefore, my target is going to be above that, at $14.74.
I placed the initial stop at 26.74, and am going to trail that down to 3% above a decent resistance at $20, for a stop of $20.6. At this point, I’ve already locked in a 10% gain. NICE!
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