Southwest (LUV) Offering Possible 7.53% Return Over the Next 29 Calendar Days

Southwest's most recent trend suggests a bullish bias. One trading opportunity on Southwest is a Bull Put Spread using a strike $32.00 short put and a strike $27.00 long put offers a potential 7.53% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $32.00 by expiration. The full premium credit of $0.35 would be kept by the premium seller. The risk of $4.65 would be incurred if the stock dropped below the $27.00 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 53.51 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

American Airlines Honors Allegheny, the Number One Merger Airline
Sat, 25 Oct 2014 16:08:00 GMT

Medical, Airline Stocks Move As Ebola Arrives In NYC
Fri, 24 Oct 2014 17:27:00 GMT

Airlines shake off travel fears; gains on earnings
Fri, 24 Oct 2014 17:13:33 GMT

JetBlue Q3 Earnings & Revenues Miss Estimates, Up Y/Y
Fri, 24 Oct 2014 13:05:02 GMT

United Continental Beats Q3 Earnings, Misses Revenues
Fri, 24 Oct 2014 12:40:05 GMT

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