Back-to-Normal Index at 92%
A bit of silver lining amid all the bad headlines. CNN’s Back-to-Normal Index is at 92% (relative to pre-pandemic in March 2020). Unemployment is at a historic low, job postings have more than doubled, and the amount invested in assets are high.
Did you know? Compared to last year, TSA has processed twice as many passengers. Americans are planning to spend 29% more on their trips as compared to 2019. People are over the pandemic and want to get away.
Where’s the money? Airlines, hotels, and transport network companies are obvious beneficiaries of the reopening. Oil and other commodities are also likely to remain firm in light of unrelenting demand and constrained supply.
What are your options? Cyclicals like DAL and UBER might be interesting bets. However, if you want to hedge against another unexpected outbreak in COVID, consider QDEL (rapid test manufacturer). Do your homework. Once you’ve made a decision where to invest, get more control over that investment with a defined outcome strategy like this one on DAL (current price $30.79)
Win rate: 71%
Invest: $2,784 dollars
Make: up to 26%
Buy 1 $33 call
Sell 1 $38 call
Sell 1 $30 put
Breakeven: $DAL @ $27.53
Source: CNN, Tripadvisor, Federal Reserve
Submitted March 07, 2022 at 08:53PM by OliveInvestor
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