Southwest (LUV) Offering Possible 7.53% Return Over the Next 33 Calendar Days

Southwest's most recent trend suggests a bearish bias. One trading opportunity on Southwest is a Bear Call Spread using a strike $41.00 short call and a strike $46.00 long call offers a potential 7.53% return on risk over the next 33 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $41.00 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 rose above the $46.00 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 above 80 which suggests that the stock is in overbought territory.

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

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Mon, 17 Nov 2014 23:30:00 GMT

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Mon, 17 Nov 2014 15:17:00 GMT

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Fri, 14 Nov 2014 23:59:00 GMT

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