United Postal Service (NYSE: UPS) currently has one of the largest fleets in the world when it comes to Cargo Aircraft with over 200 active aircraft flying to this day. They are an incredibly large company that has shown consecutive growth year over year.
One of the great things about the UPS stock is that it has a large daily trade volume. This is great as it encourages movement in the market and allows for stronger, supported moves.
As we look on the fundamental side of UPS their sales over the last 5 years has shown a strong increase in growth. Their Net Profits have consecutively been positive showing their capabilities of maintaining positive revenue. Although in the big picture of the company the fundamentals are strong, they are experiencing some resistance this year.
With Amazon now operating their own fleet this will begin reducing the business that UPS would once be receiving. As we see the market begin to add more pressure to UPS they will need to stay adaptive to maintain their competitive edge.
Just yesterday we went over a some of the more recent details regarding UPS. We set up a Put Option trade on the stock in aims of the stock price dropping and us being able to have the value of our option increase in value.
If you have not read that post I highly suggest you stop and go back to read that post before you ready any more. The last post goes into why we set up the trade the way we did. The last post explains what Put Options are and how they are priced.
Again I can not stress enough this post is just a follow up to yesterday post which contains more detail.
UPS made the exact move we had planned. Price had rejected the previous resistance level from May 6th and is coming down to meet the base of the current channel it is trading within. After seeing the market open to a low we continued to see price drop throughout the day. Price dropping down a massive 3.19% worked very well in our favor for this trade.
Yesterday we talked about Put options and how they allow for investors and traders to be able to profit on the value of the stock decreasing. This kind of strategy allows us to be able to profit from the market regardless of the current conditions.
We took a look at the Put option to be able to sell UPS at $100 before Aug 16th, 2019.
The options at the time that we entered the trade was being sold for $1.31 a share. With each contract being for 100 shares, the cost of this Options contract will cost $131. This is certainly a relatively small investment that can be made for beginners.
Options trading allows for individuals to be able to be able to earn income of large value stocks without having to risk large amounts of capitol. This is one of the main reasons why so many individuals enjoy trading options.
As a disclosure please be advised that my results are not typical and I am not guaranteeing that I can earn you 77% gains in one day or in any time period. This was a trade idea that we are tracking from yesterday to see how one could potentially implement a trade strategy on their own. The purpose of this blog is only to educate and to share market analysis ideas and news on various companies.
The option that we purchased yesterday for $1.31 a share is now worth $2.31 a share. Having invested per share $1.31 and earning $1.00 in profits this would bring you to earning 77% in profits just in one day.
If you are not sure where I am seeing the $1.31 go back to the post that was published on the 17th of July and see the Option Chain screenshot.
If you are staring at the numbers lost and confused and not sure exactly what you are looking at please do reach out to me and we can set up a time where I can help answer some of your questions. My contract info can be seen at the bottom of the page.
I am not sure about you but I would much rather learn how to earn 77% profits on my own money on stocks that I do not own over buying and holding a stock and going through the emotional roller-coaster year after year in hopes that I might earn 8-12% annually.
Keep in mind we made 77% percent in just one day! Our $131 that we invested yesterday is now worth $231 and all we did was sit back and let the market do its thing.
I understand there is a lot of factors to learn and it will take some time and you will loose some money along the way. Taking the time to learn and sharpen your skills as a trader will open up your eyes to possibilities we were once told were impossible.
I was once told that owning a plane is too expensive and unrealistic for an individual. I then realized that individual accepted that reality and did not challenge it idea of what was possible.
I once believed that the only way to make it in the aviation industry was to work for one airline for your entire life. That idea we have seen to no longer be true.
As the world changes so must we.
Challenge yourself to see the world from a different point of view. One where problems raise questions that bring about new solutions.
Stay tuned as we continue to bring you the latest in aviation news and investing strategies every week.