Southwest (LUV) Offering Possible 11.11% Return Over the Next 10 Calendar Days

Southwest's most recent trend suggests a bearish bias. One trading opportunity on Southwest is a Bear Call Spread using a strike $43.00 short call and a strike $48.00 long call offers a potential 11.11% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $43.00 by expiration. The full premium credit of $0.50 would be kept by the premium seller. The risk of $4.50 would be incurred if the stock rose above the $48.00 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 21.67 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

LATEST NEWS for Southwest

Southwest Airlines Recognized Amongst Most Valuable Employers For Military®
Mon, 09 May 2016 21:28:00 GMT
noodls – May 09, 2016 DALLAS, May 9, 2016 /PRNewswire/ –Southwest AirlinesCo. (NYSE: LUV) is among the 2016 Most Valuable Employers (MVE) for Military® as named by CivilianJobs.com. The MVE winners list helps …

Southwest Backs Unit Revenue View; Delta, Spirit Lift Fares
Mon, 09 May 2016 20:13:21 GMT

Southwest Airlines Recognized Amongst Most Valuable Employers for Military
Mon, 09 May 2016 19:58:04 GMT
noodls – Southwest Airlines Co. (NYSE: LUV) is among the 2016 Most Valuable Employers (MVE) for Military® as named by CivilianJobs.com. The MVE winners list helps veterans and job-seekers with military experience …

Southwest Airlines Recognized Amongst Most Valuable Employers For Military®
Mon, 09 May 2016 19:00:00 GMT
PR Newswire – DALLAS, May 9, 2016 /PRNewswire/ — Southwest Airlines Co. (LUV) is among the 2016 Most Valuable Employers (MVE) for Military® as named by CivilianJobs.com. The MVE winners list helps veterans and job-seekers with military experience identify the top employers to target for civilian careers. “We're honored to be a Most Valuable Employer for Military, and immensely proud of the 6,800 veterans currently in our ranks at Southwest Airlines,” said Julie Weber, Vice President People at Southwest Airlines.

Southwest Airlines: Yes, It's Crowded. It's Still This Analysts Best Idea.
Mon, 09 May 2016 18:12:00 GMT

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