AAL has run into a historically bearish trendline on the charts
Analysts are still on the fence, indicating a round of downgrades and/or price-target cuts could push American Airlines stock lower. Of the 13 analysts in question, 10 still call AAL a tepid “hold.”
Now looks like an ideal time to jump in on the bearish bandwagon. This is per the stock’s Schaeffer’s Volatility Index (SVI) of 48%, which sits in the extremely low 9th percentile of its 12-month range, suggesting options traders are pricing in low volatility expectations for AAL right now.
What’s more, AAL’s Schaeffer’s Volatility Scorecard (SVS) comes in at 19 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in, making the stock a potential premium-selling candidate.
Image and article originally from www.schaeffersresearch.com. Read the original article here.