DailyPlay – Opening Trade (DAL) – February 28, 2025

DAL Bearish Opening Trade Signal

Investment Rationale

Delta Air Lines, Inc. (DAL) – Technically, DAL recently broke down from its trading range with strong momentum and is underperforming the S&P 500, providing an opportunity for further downside to our $50 target.

Fundamentally, DAL is modestly overvalued and trades at a slight discount to its industry, with a forward P/E ratio of 7.96x compared to the industry average of 8.96x. However, it is expected to grow at a slower pace than its peers, with an expected EPS growth of 12.54% versus the industry average of 16.12%. Its expected revenue growth is 3.12%, lagging behind the industry’s 5.76%, and its net margins stand at 5.61%, compared to the industry average of 1.97%. The latest quarter of margin compression is concerning for its future outlook and valuation.

DAL – Daily

Trade Details

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish Debit Spread

Details: Buy to Open 8 Contracts DAL April 17 $60/$50 Put Vertical Spreads @ $2.33 Debit per Contract.

Total Risk: This trade has a max risk of $1,864 (8 Contracts x $233) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $233 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that is expected to continue its bearish trajectory.

1M/6M Trends: Bearish/Neutral

Relative Strength: 10/10

OptionsPlay Score: 175

Stop Loss: @ $1.17 (50% loss of premium)

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Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Thursday ‘s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View DAL Trade