American Airlines Lands on Record Low Amid International Flight Cuts

The news sparked a price-target cut from J.P. Morgan Securities

Digital Content Manager
Mar 16, 2020 at 10:48 AM
facebook twitter linkedin

American Airlines Group Inc (NASDAQ:AAL) is zooming lower this morning, following a brief respite last Friday, after the flight concern said they would slash 75% of its international flights through May 6 as a response to the dwindling demand for air travel. The news has AAL down 13.5% to trade at another record low of $12.37, bringing its year-to-date deficit to 57.4%. 

J.P. Morgan Securities chimed in, slashing its price target to $34 from $42, still well above AAL's current perch. In fact, the consensus 12-month target price of $27.47 is a whopping 122% premium to current levels, while the six of the 11 analysts in coverage consider the equity a "buy" or better. 

Short sellers, meanwhile, have been clamoring towards American Airlines. Short interest surged 46.6% in the last reporting period and now makes up 10.9% of the stock's available float.

Earlier this month we discussed a big uptick in bearish bets in American Airline's options pits, and it appears that this momentum isn't slowing down either. AAL sports a 10-day put/call volume ratio of 0.91 at the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 97% of all other readings from the past year, implying a much bigger appetite for long puts of late. 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners