united airlines

Breaking: United Airlines Flights Grounded

By:Mike Butler

UAL is trading 5% lower

  • United Airlines grounded all flights nationwide on Sept. 5 after a software update created technology issues for the airline.
  • Normal operations resumed around 12:45 p.m. Central Time, but the stock was already down around 5% from the previous close.
  • The airline's stock dropped below $48, a level it hasn't seen since early June 2023.

United Airlines (UAL) grounded its flights on Tuesday after a software update created a system-wide technology issue for the popular airline.

The stock was down as much as 5% from the previous close when the news hit, even though flights resumed the same day. Word travels fast in the stock market!

The stock is now trading just under $49 per share, which is where it was trading in early June just before it hit a 2023 high point of $58.23 on July 21.

The stock is expected to report earnings in October, and it should be an interesting release because United Airlines stock beat earnings-per-share (EPS) expectations by double digit percentages four quarters in a row, and revenue expectations three out of the last four quarters. The airline sector will likely face some challenges with the surging price of crude oil (/CL)

Airline fuel costs on the rise with crude oil?


Much to the chagrin of the airline sector, crude oil is blasting to 2023 highs at the same time United Airlines experienced its tech outage.

Saudi Arabia and Russia are extending their production cuts, which adds upside pressure to the price of oil with supply limitations and an expectation that demand may only increase with the holidays looming.

Fuel costs are a massive part of the expenses all airlines face, and rising oil prices are never a welcome sight for United, or any other airline for that matter. If oil prices remain elevated, the airline sector may have a challenging time presenting strong earnings numbers next quarter, and this is especially true for United, a company that has posted double digit EPS beats four quarters in a row.

United Airlines stock forecast


United Airlines' stock is expected move, based on current implied volatility, is +-$6.83 through the Dec. 15 monthly options cycle

We can always count on the options market to give us a one standard deviation expected price fluctuation, and currently it sits at +-$6.83 through the December monthly options cycle.

This figure can change based on current and future news and events, or on substantial earnings move, but it currently falls in line with what we've seen over the past few months. The stock has had about a $10 total price range since early June 2023, which is inside the $13 and change expected range that implied volatility is currently projecting through the rest of the year.

Be sure to check back in for a United Airlines (UAL) earnings preview in early October 2023!

Mike Butler, tastylive director of market intelligence, has been in the markets and trading for a decade. He appears on Options Trading Concepts Live, airing Monday-Friday. @tradermikeyb

For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.

Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.  Options, futures, and futures options are not suitable for all investors.  Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.

tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.

tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.

tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.

© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved.  Applicable portions of the Terms of Use on tastylive.com apply.  Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.