Southwest (LUV) Offering Possible 8.7% Return Over the Next 10 Calendar Days

Southwest's most recent trend suggests a bullish bias. One trading opportunity on Southwest is a Bull Put Spread using a strike $39.00 short put and a strike $34.00 long put offers a potential 8.7% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $39.00 by expiration. The full premium credit of $0.40 would be kept by the premium seller. The risk of $4.60 would be incurred if the stock dropped below the $34.00 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 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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Wed, 12 Nov 2014 21:00:37 GMT

Southwest’s shares trade at a premium in 3Q14
Wed, 12 Nov 2014 21:00:29 GMT

Why high operating expenses were negative for Delta’s profit margins
Wed, 12 Nov 2014 17:00:26 GMT

Must-know benefits of Southwest’s low 3Q14 leverage
Wed, 12 Nov 2014 17:00:21 GMT

Why Southwest exceeded analyst estimates in its third quarter
Wed, 12 Nov 2014 13:00:35 GMT

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