6 replies to this topic

[mrmoneybanks]

Stock is where a lot of money is made for airlines in real life

[WAZZ]

Has been requested before.

http://www.airline-e...=+stock +market

Still a neat idea.

[conflictwithin]

Stock is where a lot of money is made for airlines in real life

 

Can you help me understand how?

[mrmoneybanks]

Additionally, the 12-month price target rests at $73, well above Delta’s current trading range near $54. That’s plenty of room for follow-through buying in the wake of next week’s quarterly report.

 

Turning to DAL stock options activity, we find a healthy degree of pessimism for the shares. Currently, the April put/call open interest ratio arrives at 0.83, with puts nearly on par with calls among front-month options. Peak put OI, however, rests at the in-the-money $55 strike, lessening the sentiment impact of these puts.

 

then you sell when the stock price is high and make a profit.

 

buy when cheap then wait till stocks go flying and sell=profit

[conflictwithin]

How are airlines in real life profiting from this?

[mrmoneybanks]

when people buy stocks from the airline THE AIRLINE GETS PROFIT OR REVENUE

[conflictwithin]

I think you misunderstand how capital market works. Companies do not recognize revenue or profit from the sale of their stock. When they initially sell shares, those transactions won't appear on the income statement, you see it on the cash flow statement and balance sheet only. Once the shares are issued and are trading future transactions are between the buyers and sellers only, not the company who issued the shares. Companies can either sell or buyback their stock, neither of those situations impact their reported revenue or net income (profit). A buyback will have an impact on a companies reported EPS but not their actual revenue or profit.