How Much Worse Will the Coronavirus Hurt Airline Stocks?

How Much Worse Will the Coronavirus Hurt Airline Stocks?

Posted On March 6, 2020 1:30 pm

The airline stocks had been the first to decline as the Covid19 virus started spreading beyond China and they have now been the hardest hit.  The “US. Global Jets ETF (JETS)”  is down some 32% in the past three weeks, which is nearly three times worse than the broader “SPDR S&P 500 (SPY)” 12% correction over the same time period.

While there is no sign travel will return back to normal anytime soon, in fact, it will probably get worse in the coming weeks, it seems investors might be trying to find a glimmer of bluer skies for the sector.

In trading, the saying  “it’s always darkest before the dawn” translates to “reversals often occur when traders and investors are most afraid they won’t.

In real-time, of course, it’s extremely difficult to know when those moments are occurring, and it’s even more of a challenge to put on a trade. But when prices reach levels that allow you to clearly define risk and potential reward, it can be easier to make an objective decision.

Airline stocks look like they are… Continue reading the rest of this important investor information at StockNews.com

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Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.

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