Southwest (LUV) Offering Possible 12.36% Return Over the Next 18 Calendar Days

Southwest's most recent trend suggests a bullish bias. One trading opportunity on Southwest is a Bull Put Spread using a strike $39.50 short put and a strike $34.50 long put offers a potential 12.36% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $39.50 by expiration. The full premium credit of $0.55 would be kept by the premium seller. The risk of $4.45 would be incurred if the stock dropped below the $34.50 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 at 56.7 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

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Southwest Airlines Celebrates #GivingTuesday By Donating $25,000
Tue, 02 Dec 2014 15:50:17 GMT
noodls – Southwest Airlines participates in global giving back holiday with donations benefitting 10 nonprofit organizations DALLAS , ­­Dec. 2, 2014 /PRNewswire/ — Southwest Airlines (NYSE: LUV) today announced …

Southwest Airlines Celebrates #GivingTuesday By Donating $25,000
Tue, 02 Dec 2014 15:30:00 GMT
PR Newswire – 2, 2014 /PRNewswire/ — Southwest Airlines (LUV) today announced a $25,000 donation to 10 nonprofit organizations in honor of #GivingTuesday, a global holiday dedicated to giving back. “Southwest Airlines has always been dedicated to making a positive difference in the communities we serve. We are excited to participate in this special day of giving in addition to our ongoing community outreach efforts,” said Linda Rutherford, Southwest Airlines' Vice President of Communication & Outreach.

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