Consumers are sending a message loud and clear—despite inflation pressures and economic uncertainty, they’re still opening their wallets for experiences that matter. One corner of the discretionary sector is capturing that strength in full force, fueled by resilient demand and a steady flow of spending that refuses to slow down. The recent market rotation has only amplified the move, and the chart on this name is a textbook case of momentum building session after session. With each push higher, the breakout is becoming harder to ignore—this is no fleeting bounce, but a surge that looks ready to run even further.

That stock is none other than Delta Air Lines (DAL)—a leader in the travel space that continues to prove consumer demand is alive and well. With record passenger volumes, resilient discretionary spending, and strong pricing power across key routes, investors are piling in as DAL benefits directly from the boom in travel. Layer on top the broader market rotation into discretionary names, and you have a company that’s not just participating in the rally—it’s setting the pace. The fundamentals are aligning with the technicals, and that combination has traders watching this breakout with laser focus.

🔑 Unlock the door to profit opportunities! Join my Weekly Stock and Option Alert Newsletter for exclusive trade insights. Delve into multiple trade setups every week and receive actionable trade recommendations. Click here to sign up now!

What’s pushing DAL to the very top of my Buy list right now is the technical confirmation flashing across the charts. The stock isn’t just trading above every major trendline—it’s also delivered a powerful momentum signal that I rely on heavily: the 24/52-day MACD line has crossed above the 18-day EMA. That’s not a stock pick based on hope—that’s a momentum surge. Combined with DAL’s steady pattern of higher highs and higher lows, this is the kind of breakout setup that demands attention. When price action, trendlines, and momentum indicators all align this cleanly, the odds tilt dramatically in favor of upside acceleration. When I see this, I know this is a stock that I want to gain exposure to.

That’s why I’m targeting this setup with an in-the-money call debit spread. DAL’s technicals and momentum are firing on all cylinders—but instead of chasing simple calls, I want the added buffer a spread provides. With options on this name carrying rich premiums, I can actually flip that in my favor: right now, there’s a spread offering a potential 78.6% profit if DAL shares are up, flat, or even down as much as 10% at expiration. That’s the kind of trade setup that I am always on the lookout for—multiple paths to profit with outsized upside potential.

And if you want to learn exactly how strategies like this work—and how to put them to use in your own trading—our team put together something special: G.R.O.W. This tell-all trading manual lays out our most time-tested setups step by step, the very same tactics that fuel our daily edge. If you’re serious about trading smarter with a methodical approach, this is a resource you can’t afford to skip. 👉 Check it out today and see how quickly you can put these strategies to work.

Wishing You the Best in Investing Success,

Blane Markham

Chief Trading Strategist

Author, Trade of the Day

Have any questions? Email us at dailytrade@chuckstod.com

*Trading incurs risk and some people lose money trading.