Southwest (LUV) Offering Possible 11.11% Return Over the Next 24 Calendar Days

Southwest's most recent trend suggests a bullish bias. One trading opportunity on Southwest is a Bull Put Spread using a strike $32.00 short put and a strike $27.00 long put offers a potential 11.11% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $32.00 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 dropped below the $27.00 long put strike price.

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

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

The RSI indicator is above 80 which suggests that the stock is in overbought territory.

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

Airport Outlet Drought Means Fliers Must Grab for Power
Thu, 28 Aug 2014 04:01:00 GMT

Qantas posts record full-year loss; Shares jump
Thu, 28 Aug 2014 00:30:00 GMT

Southwest Airlines Loses Elderly Passenger For 11 Hours: Why Customer Service Is Everyone's Job
Wed, 27 Aug 2014 22:46:00 GMT
Forbes – Southwest Airlines, with the help of a skycap and a “processing error,” recently misplaced Alice Vaticano, an 85 year old wheelchair-bound diabetic, for eleven hours in Newark Airport with no food and no bathroom. Ms. Vaticano's daughter had personally delivered her mom to the skycap in question at security, and had […]

Must-read: Why JetBlue’s LiveTV sale will affect its financials
Wed, 27 Aug 2014 21:00:13 GMT

Must-know: Why JetBlue’s operating costs rose in 2Q14
Wed, 27 Aug 2014 17:00:14 GMT

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