Bear Notes Put Pressure on United Airlines Stock

Citigroup also cut UAL's price objective to $56

Digital Content Manager
Jul 25, 2022 at 9:54 AM
facebook twitter linkedin


The shares of United Airlines Holdings Inc (NASDAQ:UAL) are down 0.8% at $36.04 at last check, after Susquehanna downgraded the security to "neutral," and lowered its price target to $35, citing operating challenges and the economic slowdown. Plus, Citigroup cut UAL's price objective to $56 from $71.

The brokerage bunch was mostly pessimistic towards the equity coming into today, with eight of the 14 in question carrying a tepid "hold" or worse rating. And while short sellers have hit the exits -- with short interest down 16% in the last two reporting periods -- the 19.35 million shares sold short still make up 5.9% of United Airlines stock's available float.

Short-term options traders echo that pessimism, per the security's Schaeffer's put/call open interest ratio (SOIR) of 1.11, which ranks higher than all but 6% of readings from the last 12 months. In other words, these traders have rarely been more put-biased.

United Airlines stock's latest rally lost steam at the $42 level last week, and failed to break through overhead pressure from the 60-day moving average. It's been a volatile year for the shares so far, and longer term the security carries a hefty 23.6% year-over-year deficit.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners