Southwest (LUV) Offering Possible 7.53% Return Over the Next 20 Calendar Days

Southwest's most recent trend suggests a bearish bias. One trading opportunity on Southwest is a Bear Call Spread using a strike $52.00 short call and a strike $57.00 long call offers a potential 7.53% return on risk over the next 20 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $52.00 by expiration. The full premium credit of $0.35 would be kept by the premium seller. The risk of $4.65 would be incurred if the stock rose above the $57.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Southwest is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Southwest is bearish.

The RSI indicator is at 40.75 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

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Affordable air fares in addition to a much-improved job market and rising disposable income are contributing to the increased demand for air travel.

Southwest Airlines crew detail engine explosion
Wed, 23 May 2018 19:59:03 +0000
The flight crew on the Southwest Airlines jet that was forced to make an emergency landing in Philadelphia after an engine exploded described the harrowing experience in their first joint interview on Wednesday. Capt. Tammie Jo Shults called her first officer Darren Ellisor an “unsung hero” on “CBS This Morning ,” saying he helped communicate with the flight attendants while she took controls for the landing. Shults, who was one of the first female fighter pilots in the U.S. Navy, said her military training helped her keep calm.

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