Southwest (LUV) Offering Possible 12.11% Return Over the Next 27 Calendar Days

Southwest's most recent trend suggests a bullish bias. One trading opportunity on Southwest is a Bull Put Spread using a strike $47.50 short put and a strike $42.50 long put offers a potential 12.11% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $47.50 by expiration. The full premium credit of $0.54 would be kept by the premium seller. The risk of $4.46 would be incurred if the stock dropped below the $42.50 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

Rising Fuel Prices Are Normally Bad News for Airline Stocks. Why This Time Is Different.
Thu, 18 Feb 2021 12:00:00 +0000
Jet fuel prices are up sharply, making it tougher for airlines to turn a profit, but it could be a bullish signal for demand.

Southwest Airlines Launches One Million Acts Of Kindness Challenge To Celebrate 50 Years Of Heart In Action
Wed, 17 Feb 2021 16:20:00 +0000
Southwest Airlines Co. (NYSE: LUV) is engaging its Customers, Employees, and partners to complete a collective one million Acts of Kindness throughout its 50th Anniversary year, celebrating half a century of empowering People and communities to lead with Heart and kindness.

ROCE Insights For Southwest Airlines
Wed, 17 Feb 2021 14:36:52 +0000
During Q4, Southwest Airlines (NYSE:LUV) brought in sales totaling $2.01 billion. However, earnings decreased 17.22%, resulting in a loss of $1.17 billion. In Q3, Southwest Airlines brought in $1.79 billion in sales but lost $1.41 billion in earnings. Why ROCE Is Significant Changes in earnings and sales indicate shifts in Southwest Airlines's Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed by a business. Generally, a higher ROCE suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q4, Southwest Airlines posted an ROCE of -0.13%. It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but several factors could affect earnings and sales in the near future. View more earnings on LUV ROCE is an important metric for the comparison of similar companies. A relatively high ROCE shows Southwest Airlines is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital which will generally lead to higher returns and earnings per share growth. In Southwest Airlines's case, the ROCE ratio shows the amount of assets may not be helping the company achieve higher returns. Investors may take this into account before making any long-term financial decisions. Q4 Earnings Recap Southwest Airlines reported Q4 earnings per share at $-1.29/share, which beat analyst predictions of $-1.68/share. See more from BenzingaClick here for options trades from BenzingaROCE Insights For Spirit AirlinesLooking Into ALLETE's Return On Capital Employed© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Southwest Airlines Rapid Rewards Ranked Among Best Loyalty Programs in America
Tue, 16 Feb 2021 23:43:00 +0000
Southwest Airlines Co. (NYSE: LUV) today was named to Newsweek's list of America's Best Loyalty Programs 2021 for its Rapid Rewards® program. Southwest Airlines® was recognized under the Low-Cost Airlines subcategory.

Southwest Airlines Sees Travel Looking Up, but Its Stock Is No Bargain
Tue, 16 Feb 2021 17:05:00 +0000
Leisure bookings are improving, according to Southwest Airlines. But there may be better stock values in United and Delta.

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