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Options Trader
Basic Strategies for Big Profits in Any Market

Buy Call JETS

April 25, 2023
Sell your JETS ETF (JETS) October 20 Calls

I loved the stock strength and option activity when we bought our JETS and BABA calls. And while the set-up was nearly perfect, the trades have been far from it, as the market is not yet in gear and these stocks aren’t working. Let’s close our JETS position.

To execute these trades, you need to:
Sell to Close JETS October 20 Calls

Taking losses on these trades is no fun. However, the market has spoken, and neither of these trades is working, so let’s cut our losses on the JETS calls.

March 15, 2023
Sell a Third of JETS October 20 Calls

Just last Thursday all was well with our JETS position as the ETF and many of its holdings were breaking out to new highs. Fast forward a week, and the ETF and its stocks are in free fall. What a mess this market has become.

Regardless, with the market under extreme pressure, I’m going to take a loss on a third of my JETS calls. After this sale, I will step back and evaluate the balance of our position in the weeks to come.

To execute this trade you need to:

Sell to Close a Third of JETS October 20 Calls

February 28, 2023
Buy the Airline ETF (JETS) October 20 Calls (exp. 10/20/2023) for $2.25 or less.

As I’ve written several times in the last several weeks, Airline stocks, led by AAL and UAL, have seen steady call accumulation. Here is a small sample from last week:

Buyer of 8,000 American Airlines (AAL) March 16 Calls for $0.63 – Stock at 16

Buyer of 45,500 American Airlines (AAL) April 17 Calls for $0.64 – Stock at 16

Buyer of 3,000 United Airlines (UAL) June 55 Calls for $3.20 – Stock at 51

This call buying, as well as the sector holding up despite the market pulling back 5%, is a very interesting set-up, and today I am going to get involved via the ETF that best represents the sector, the JETS.

To execute this trade you need to:
Buy to Open the JETS October 20 Calls

The most you can lose on this trade is the premium paid, or $225 per call purchased.

The risks I see in this trade are general sector and market risks.

One final note on this trade, while AAL/UAL look good, there are other airlines that look less impressive, such as JBLU/DAL. Also, the JETS ETF isn’t a pure airline ETF, as there are positions in BKNG/TRIP/EXPE/GD as well.

Regardless, I really like the option activity in the ETF’s leaders (UAL/AAL), as well as the very inexpensive price of $2.25 for eight months of exposure to the sector, which makes this a great risk/reward set-up.

Position (Original)
JETS October 20 Call
Position Strategy
Buy Call
Opened Date
February 28, 2023
October 20, 2023
Net Price
Jacob Mintz is a professional options trader and editor of Cabot Options Trader. Using his proprietary options scans, Jacob creates and manages positions in equities based on unusual option activity and risk/reward.