Southwest (LUV) Offering Possible 8.7% Return Over the Next 8 Calendar Days

Southwest's most recent trend suggests a bearish bias. One trading opportunity on Southwest is a Bear Call Spread using a strike $43.00 short call and a strike $48.00 long call offers a potential 8.7% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $43.00 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 rose above the $48.00 long call 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 down which suggests that the medium-term momentum for Southwest is bearish.

The RSI indicator is below 20 which suggests that the stock is in oversold 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

Southwest Airlines’ Falling Leverage: What Does It Mean?
Thu, 12 May 2016 05:04:19 GMT

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Webcast Alert: Southwest Airlines Co. Annual Meeting of Shareholders
Wed, 11 May 2016 17:17:02 GMT
noodls – May 11, 2016 DALLAS, May 11, 2016 /PRNewswire/ –Southwest AirlinesCo. (NYSE: LUV) invites you to listen to a live webcast presentation of its Annual Meeting of Shareholders. A link to the webcast will …

Southwest Airlines gets some really good news on reward seat availability front
Wed, 11 May 2016 17:15:10 GMT

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