Fly CAL

My purchase of CAL two weeks ago was a bit early for market conditions. I noticed that things were becoming irrational last week for most airline stocks especially CAL. The market was too heavily focused on Ernesto and Iran. I added to my position of Jan 30 Call Options mid week to bring my basis down to 1.31. Looking back a few more options @1.00 on Friday afternoon would have been a good call, but didn't want to overload the position. The options closed @ 1.15 today, with no trades in the afternoon when the ask reached 1.35. CAL should be able to take advantage of falling oil & gas prices due to their hedging strategy (or lack of.) CAL's strategy has been to hedge future full purchases only as seats on flights are sold. This doesn't really seem like a hedge, but more of a prepayment. This strategy should serve them well if prices begin to moderate, as they will not be locked into longer term contracts or worthless futures.