ACHR to take flight (again)

4 Kas

ACHR is my favourite vertical flight buys. I think JOBY is over-priced, and EVTL just doesn't seem to have enough market visibility.
I've been in and out of ACHR for the better part of 2 years, and it's coming back into a spot where a swing makes a bit of sense.

It's still in the rising wedge (which of course, it could fall out of), but there's lots of support to indicate that it should hold.

1. Today at pre-market it's trading at $10. That's almost exactly the POC for the past year.
2. The 200 day moving average is at about $9.50
3. The lower trendline is at about $9.00

With earnings on Thursday, there is some risk to this trade, but I think with options premiums, it's a good risk/reward balance.

On open, I'll look to sell puts somewhere around my ideal entry point which is $9.
Ideally I'd like a 10% value on the puts which means that I'd like about $0.09 per share.

If the earnings crash, and I own the stock below $9, I'm OK with that. If the stock price drops, but stays above $9, I may just outright buy it. If the stock price jumps, I'll keep the premium, and wait for a new entry point at a later date.

I'll update this at market open.

4 Kas

İşlem aktif

I'm in. Sold $9 puts at 0.09 as I hoped

5 Kas

Not

Today ACHR is holding the 200 day moving average. I'm going to sell more puts, but for next week (Nov 14).
This time, a little bit lower at an $8 strike price. This time the premium is $0.10 per share.

7 Kas

Not

Just an update, ACHR for me is a trade, but also an investment I believe in. I think it's important to only trade stocks that you like.
This earnings report was a great example of why.
The stock price dropped 8% on earnings. BUT, the reason was because of a big purchase of an airport in California. In the long term, that's extremely bullish. So while the stock price will take a hit, long term, I believe that it's a good decision.

7 Kas

Not

Regarding the trade, some might wonder why I didn't wait for earnings to get in. Simple: I like ACHR and I wanted back in at this price point or lower. The price could have spiked, and I would have been left watching again.

If I am planning on setting a buy limit at $9 for 100 shares, I might as well sell a put at $9.
Then if the price doesn't come down, I still make a little money. If the price comes down below $9. My average is $9 - (the premium) = $8.91 which is a slightly better entry.

So here's the current situation.
I have a put sell option at $9 expiring today. Unless there's a big bounce, I'll own 100 shares at an $8.91 average on the weekend.
Next week, I have another put sell at an $8 strike expiring Friday. With the pre-market price at $8.06 there's a chance that might be exercised as well.
At market open, I'll sell a $7 or $7.5 put for the following week. Using puts I'll build my position. I'd love an average anywhere below $8 My maximum position is 500 shares.

I have 5 target prices where I'd like to unload those shares:
TP 1 = $10
TP 2 = $10.50
TP 3 = $11
TP 4 = $11.5
TP 5 = $15 (long term hold)

7 Kas

Not

For those worried about how far this will go. I think $7 is a fair spot for the bounce to happen. I can see it going to $6 too, but as someone willing to hold longer term, for me it's just a better deal.
Note: I sold a Nov. 21, 7-strike put for $0.22
Will update this trade at close.

7 Kas

Not

Sold another $7 put - but for November 28th. Premium was $0.33 per share.

8 Kas

Not

Here's where the position is at.
Equity = 100 shares at an average of $8.90.
Last price = $8.25
Total Loss/Gain = -$65
Put sales =
1x $8-nov.14 ($0.10)
1x $7-nov. 21 ($0.22)
1x $7-nov. 28 ($0.33)
Total +$65

When calculating the position, I don't take into account the options profit/loss unless they get exercised.

So, the position as of now is exactly 0$

I'll update each Saturday or if new options are taken

11 Kas

Not

I bought back the Nov.28 $7-strike for $0.04. Net profit after commissions = $28

12 Kas

Not

I looks like that old lower trendline has become the new upper trendline resistance.
Today I sold a $7.5 strike put for Nov 21st at a premium of $0.15 per share.

I'm happy to keep earning these premiums if the action stays down here. I'm also happy to add another 100 shares if the puts get triggered.

Options help earn as you're building a position. I've earned $76-ish on my ACHR move so far. My equity position is currently down $54. But with the options, the whole position is actually green.

14 Kas

Not

I had an interesting day with ACHR. I was actually hoping the $8 strike that was expiring today would hit.
But I was paid $.10 to write the put, so when the price was $8.10 earlier in the day, I decided to roll it another week.
I rolled it to next week, still an $8 strike. The premium was $0.32 (I paid $0.03 to roll it).

So as of now, my option income is $1.05/share = $105
My equity position is 100shares @ $8.898. Current price $7.92 = -$98 (-11%)
Total position = +$7

I love using options to help build a position, or just earn profit as your position consolidates.

Will update next week!

evvelsi gün

Not

Ok, what a wild week. It was one of those weeks where everything coming out of the company was positive, but the greater market was struggling with risk assets and it impacted ACHR. And, honestly, I'm not mad about it. It just means that I can buy shares at lower prices, and sell more options to make some extra money.

The week went like this:

At close the $8 strike was exercised so we'll wipe the put options profit from my count (-$32).
As a result, I own a new lot of 100 shares. They were bought at an average of $8 - $0.32= $7.68.

My total equity position is now 200 shares with an average of 8.29.

On Thursday when it became obvious my $8-strike put would be exercised I sold a covered call at my first take profit point which is a $10-strike. I did a Dec19 expiry, and I'll just keep rolling that until it gets taken. I was paid $0.19/share to sell that call.

So my total position is now:
Equity = -$216
Options = +$19
Total = -$197

I still have 2 active puts that I wrote: Nov28 $7.5, and a Dec 19 $7
I'm at 40% of my maximum position. So I'll likely sell another put on Monday. Likely the $6.5 strike for Dec05 which is writing somewhere around $0.16/share.

I'll update next Saturday. Stay strong out there, this week was rough, but there's lots of buying opportunities out there right now!