Southwest Offering Possible 8.7% Return Over the Next 37 Calendar Days

Southwest's most recent trend suggests a bullish bias. One trading opportunity on Southwest is a Bull Put Spread using a strike $21.00 short put and a strike $16.00 long put offers a potential 8.7% return on risk over the next 37 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $21.00 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 $16.00 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 77.44 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

Webcast Alert: Southwest Airlines to Discuss Fourth Quarter and Full Year 2013 Financial Results on January 23, 2014
Fri, 17 Jan 2014 00:06:07 GMT
noodls – DALLAS, Jan. 16, 2014/PRNewswire/ — Southwest Airlines Co. (NYSE: LUV) invites you to listen to a live webcast of its fourth quarter and full year 2013 financial results. Details are as follows: When: …

Webcast Alert: Southwest Airlines to Discuss Fourth Quarter and Full Year 2013 Financial Results on January 23, 2014
Thu, 16 Jan 2014 23:43:00 GMT
PR Newswire – DALLAS, Jan. 16, 2014 /PRNewswire/ — Southwest Airlines Co. (NYSE: LUV) invites you to listen to a live webcast of its fourth quarter and full year 2013 financial results. Details are as follows: When: …

United flight attendants face furlough in dispute
Thu, 16 Jan 2014 22:56:18 GMT
CNBC – More than 688 junior flight attendants at the carrier will get furlough notices in April.

Union sues Southwest over sick-leave changes
Thu, 16 Jan 2014 22:07:29 GMT

Union sues Southwest over sick-leave changes
Thu, 16 Jan 2014 22:07:29 GMT
AP – The union for bag handlers and other airport ramp workers is suing Southwest Airlines Co., charging that the carrier wrongly restricted sick leave while freezing weather snarled operations in Chicago this …

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