10-28-2020, 12:48 PM
As you guys know, I have a large RTX position.
For one, the company is not the same one it was in February, so a 50% decline may very well be justified. It will take a long time for the aftermarket to recover, months and months longer than it takes for air travel to recover. And that doesn't appear to be happening anytime soon. Plus the balance sheet of RTX is far, far worse than the absolutely pristine one that RTN kept. (no big issues with the current balance sheet, but it's far from what it used to be)
I'll also be selling a put sometime this week, but purely as a trading strategy, I do not plan on getting assigned another 100 shares. (I have enough already, and other defense companies such as LHX are just way better positioned right now)
For one, the company is not the same one it was in February, so a 50% decline may very well be justified. It will take a long time for the aftermarket to recover, months and months longer than it takes for air travel to recover. And that doesn't appear to be happening anytime soon. Plus the balance sheet of RTX is far, far worse than the absolutely pristine one that RTN kept. (no big issues with the current balance sheet, but it's far from what it used to be)
I'll also be selling a put sometime this week, but purely as a trading strategy, I do not plan on getting assigned another 100 shares. (I have enough already, and other defense companies such as LHX are just way better positioned right now)