Southwest (LUV) Offering Possible 14.94% Return Over the Next 39 Calendar Days

Southwest's most recent trend suggests a bearish bias. One trading opportunity on Southwest is a Bear Call Spread using a strike $32.00 short call and a strike $37.00 long call offers a potential 14.94% return on risk over the next 39 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $32.00 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 rose above the $37.00 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 26.59 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

Steep Learning Curve for Southwest Airlines as It Flies Overseas
Wed, 15 Oct 2014 04:42:13 GMT
The Wall Street Journal – Southwest’s addition of overseas flights has required big changes at the Dallas-based airline, including revamping its reservation system and retraining its staff.

Wall Street Ends Mixed; Airlines Soar As Oil Plunges
Tue, 14 Oct 2014 21:09:00 GMT

Oil slide wipes out stock market gains
Tue, 14 Oct 2014 20:17:49 GMT

Southwest Adds Routes at Love Field as Amendment Ends
Tue, 14 Oct 2014 19:55:10 GMT

US STOCKS-Wall St bounces back from 3-day drop
Tue, 14 Oct 2014 18:09:04 GMT

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