Southwest (LUV) Offering Possible 14.94% Return Over the Next 17 Calendar Days

Southwest's most recent trend suggests a bullish bias. One trading opportunity on Southwest is a Bull Put Spread using a strike $40.50 short put and a strike $35.50 long put offers a potential 14.94% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $40.50 by expiration. The full premium credit of $0.65 would be kept by the premium seller. The risk of $4.35 would be incurred if the stock dropped below the $35.50 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 59.63 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

Positive trends persist in September’s traffic, utilization rate
Wed, 03 Dec 2014 21:34:09 GMT

Southwest Airlines And International Association Of Machinists Reach Agreement
Wed, 03 Dec 2014 21:15:35 GMT
noodls – DALLAS , Dec. 3, 2014 /PRNewswire/ — Southwest Airlines (NYSE: LUV) announced today that its Customer Service Agents (CSAs) and Customer Representatives (CRs), represented by the International Association …

Gol’s operating costs outpace its revenue
Wed, 03 Dec 2014 21:00:43 GMT

3:25 pm Southwest Air and International Association Of Machinists reach agreement for new four-year contract
Wed, 03 Dec 2014 20:25:00 GMT

Southwest Airlines And International Association Of Machinists Reach Agreement
Wed, 03 Dec 2014 20:24:00 GMT
PR Newswire – DALLAS, Dec. 3, 2014 /PRNewswire/ — Southwest Airlines (LUV) announced today that its Customer Service Agents (CSAs) and Customer Representatives (CRs), represented by the International Association of Machinists and Aerospace Workers (IAM), have voted in favor of a new four-year contract. “I am proud to have a new, lucrative contract that rewards our Employees for their exceptional performance, while adding flexibilities that support our mission of being the number one low-cost carrier in the country,” said Randy Babbitt, Southwest Airlines' Senior Vice President Labor Relations. Southwest Airlines is approximately 83 percent unionized and actively engaged in negotiations with six out of its 12 unions. The airline is known for its friendly Customer Service and currently serves as the largest domestic carrier in terms of passengers boarded.

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