Southwest (LUV) Offering Possible 17.65% Return Over the Next 38 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 17.65% return on risk over the next 38 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 $0.75 would be kept by the premium seller. The risk of $4.25 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 28.9 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

Southwest Airlines And The Hispanic Association Of Colleges And Universities Announce College Student Recipients Of Annual Travel Award Program
Wed, 15 Oct 2014 21:51:46 GMT
noodls – DALLAS , ­Oct. 15, 2014 /PRNewswire/ — Southwest Airlines (NYSE: LUV), in partnership with the Hispanic Association of Colleges and Universities (HACU), has awarded 90 students with complimentary roundtrip …

Ebola fears hit airlines
Wed, 15 Oct 2014 21:30:00 GMT

Southwest Airlines And The Hispanic Association Of Colleges And Universities Announce College Student Recipients Of Annual Travel Award Program
Wed, 15 Oct 2014 20:41:00 GMT
PR Newswire – 15, 2014 /PRNewswire/ — Southwest Airlines (LUV), in partnership with the Hispanic Association of Colleges and Universities (HACU), has awarded 90 students with complimentary roundtrip airfare as part of the Lanzate!/Take Off! travel award program. The Lanzate! program is geared toward Hispanic college students with economic need who attend school far away from home. Hispanic college students, ranging from incoming freshmen through graduate students, submitted essays displaying their need for travel on Southwest Airlines. In the application essays, students wrote about their personal experiences and the importance of staying connected with their families while pursuing higher education away from family. A panel of judges made up of college professors and educational advocates met to determine the award recipients. Recipients were awarded between one and four roundtrip tickets for travel for themselves or a family member. Southwest gave 231 tickets this year to encourage students to continue on their path to higher education.

Why Southwest Airlines (LUV) Stock Is Down Today
Wed, 15 Oct 2014 17:12:00 GMT

Airline stocks lose altitude on fresh Ebola fears
Wed, 15 Oct 2014 16:53:40 GMT

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