03-21-2020, 11:32 AM
Did a little evaluating this AM and using 6 different criteria, I scored 5 companies. 3 airlines along with FDX and UPS. The 6 categories of comparison were: Divvidend yield, Payout %, Debt Ratio, Price/Book, 5 year PEG and EV/EBITDA. Each category was weighted equally and each stock was ranked 1-5 in each category. 1 being best, 5 being worst.
We know things will look differently going forward but this is the data available and pre-Corona should be a good harbinger of post-Corona IMO.
Best possible score would be 6 and worst score would be 30
Scores
UPS 23
FDX 20
DAL 11
UAL 18
LUV 17
For the put sellers, an 17APR20 put, 12.5% OTM on each of LUV, DAL, or UAL yields the following. 17%, 17.6% and 26%
I think I will sell DAL 17APR20 put at 18 strike for >$3.75. So break even would be down to $14.25
I can live with that but let's watch Sunday night open.
Good luck and health to all!
We know things will look differently going forward but this is the data available and pre-Corona should be a good harbinger of post-Corona IMO.
Best possible score would be 6 and worst score would be 30
Scores
UPS 23
FDX 20
DAL 11
UAL 18
LUV 17
For the put sellers, an 17APR20 put, 12.5% OTM on each of LUV, DAL, or UAL yields the following. 17%, 17.6% and 26%
I think I will sell DAL 17APR20 put at 18 strike for >$3.75. So break even would be down to $14.25
I can live with that but let's watch Sunday night open.
Good luck and health to all!