I told you to watch for this pattern…
It’s one of my favorite trade setups. And we just saw it again, on Delta Air Lines Inc. (NYSE: DAL).
It dropped right into our laps…
I don’t know how many times people need to see this trade until they start taking it themselves.
Hopefully you’re following along…
It’s my favorite trade pattern…
Key Price Action
The best part about this pattern: we don’t have to search for a catalyst.
There isn’t any stress about “finding the story first” or “being first to the move”.
In fact, if you think about it, we’re showing up after the crowd.
I’m talking about a reversion trade. When a stock’s price extends too far in one direction from aggressive buying or selling. Eventually, the stock will switch directions, at least briefly.
That’s the move I want. When the stock backtracks after an unsustainable move.
That’s exactly what we saw from DAL this week.
My Delta Trade
On Monday, August 31, I sent this alert to traders:
“BUY DAL 9/4/26 78 CALLS”
“Delta is down 4 days in a row and broke under 80 for the first time since. The selloff is happening on less and less volume which is a big sign of buyer exhaustion. Any sell off in Oil should see Delta back above 80 very quickly.”
Here’s a chart of DAL that shows the multiday selloff and support from earlier in 2026:
I was a day early with my entry. The stock fell on Tuesday, September 1 as well.
That’s why I always tell traders to keep some dry powder, in case they want to average down their position.
Either way, the rally on September 2 brought us back into the green. I sent an alert that morning to take some gains into the move:
“Nice move in DAL, trade out of half 10:15-11:00, and hold half until 3:00-4:00.”
It doesn’t look like much on the chart, but with short-dated options contracts the percent change of the stock is multiplied exponentially.
We see these reversion moves over and over again.
There are so many opportunities in the market.
Not just in options, every corner of the market. I even have a friend who trades penny stocks…
He’s taught more than 50 people how to make +$1 million with this strategy.
Study up.
It’s officially September, and the fall/winter volatility is about to begin.
Stay Street Smart,
Jeff Zananiri
*Past performance does not indicate future results, Not typical.
