Southwest (LUV) Offering Possible 6.38% Return Over the Next 6 Calendar Days

Southwest's most recent trend suggests a bullish bias. One trading opportunity on Southwest is a Bull Put Spread using a strike $56.50 short put and a strike $51.50 long put offers a potential 6.38% return on risk over the next 6 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $56.50 by expiration. The full premium credit of $0.30 would be kept by the premium seller. The risk of $4.70 would be incurred if the stock dropped below the $51.50 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 78.64 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

[$$] US airlines enjoy rare break from turbulence
Fri, 08 Feb 2019 04:00:26 +0000
A string of forecast-beating earnings from America’s leading carriers last month, alongside some optimistic commentary from executives, has driven the NYSE Arca Airline index up about 16 per cent this year, almost double the rise of the S&P 500. has rebounded this year, it is just over 25 per cent lower than it was in October and remains a tailwind for the airlines. A slowing domestic economy, rising labour costs and the threat of another government shutdown are all high on the list of risks.

United Airlines posts dismal on-time performance in January
Thu, 07 Feb 2019 18:45:15 +0000
The Chicago-based carrier has not begun to turn around a string of poor monthly on-time arrival results. Flight cancellation numbers were high too.

Zacks.com featured highlights include: Merit Medical, Pinnacle West, Steelcase, Southwest and EMCOR
Thu, 07 Feb 2019 15:07:03 +0000
Zacks.com featured highlights include: Merit Medical, Pinnacle West, Steelcase, Southwest and EMCOR

Houston airports broke passenger records in 2018
Thu, 07 Feb 2019 14:29:19 +0000
George Bush Intercontinental Airport (IAH) and William P. Hobby Airport (HOU) broke records for total passengers as well as domestic and international passengers.

Southwest Airlines Is Spreading Its Wings in Hawaii
Thu, 07 Feb 2019 13:30:00 +0000
When Southwest enters a new market, there is often downward pressure on pricing. Both stocks are off to a good start in 2018, with Southwest up nearly 24% and Hawaiian climbing 16%. Since then, Southwest has gained 11.7%, while Hawaiian has lost 8.2%.

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