Southwest (LUV) Offering Possible 26.58% Return Over the Next 10 Calendar Days

Southwest's most recent trend suggests a bearish bias. One trading opportunity on Southwest is a Bear Call Spread using a strike $47.50 short call and a strike $52.50 long call offers a potential 26.58% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $47.50 by expiration. The full premium credit of $1.05 would be kept by the premium seller. The risk of $3.95 would be incurred if the stock rose above the $52.50 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 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

SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Southwest Airlines Company of Class Action Lawsuit and Upcoming Deadline – LUV
Sat, 07 Mar 2020 15:35:00 +0000
NEW YORK, NY / ACCESSWIRE / March 7, 2020 / Pomerantz LLP announces that a class action lawsuit has been filed against Southwest Airlines Company (“Southwest” or the “Company”) (NYSE:LUV) …

Airline stocks slammed by coronavirus fears, but experts say reaction may be overdone
Sat, 07 Mar 2020 15:21:00 +0000
U.S. airline stocks have been slammed as companies cancel all but urgent travel and avoid regions with high numbers of cases of the coronavirus COVID-19, but investors say the reaction may be overdone.

Airline stocks swing to gains, erasing earlier sharp losses
Fri, 06 Mar 2020 19:34:00 +0000
Shares of airlines reversed course to turn higher, were still headed for a third-straight week of gains. The U.S. Global Jets ETF rose 1.2% in afternoon trading, after being down as much as 4.1% at a 3-year low earlier in the session. The bounce comes after the air carrier sector tracker tumbled 9.0% on Thursday, amid growing fears over the spread of COVID-19. It was still down 8.2% on the week, adding the 21.5% plunge last week and the 2.9% drop the week before. Within the Jets ETF, shares of United Airlines Holdings Inc. rose 2.8% after falling as much as 6.5% at its intraday low; American Airlines Group Inc. tacked on 0.3%, but was down as much as 7.7% earlier; Delta Air Lines Inc. advanced 1.5%, to erase earlier losses of as much as 4.8%; JetBlue Airways Corp. hiked up 3.6% to reverse an earlier loss of 6.1%; and Southwest Airlines Co. slipped 0.4%, but was down as much as 5.6% earlier. The Jets ETF has lost 31% over the past three months, while the S&P 500 has slipped 7.0%.

Stocks pare losses on Kudlow ‘targeted stimulus’ comments
Fri, 06 Mar 2020 19:10:21 +0000
As the coronavirus continues to take its toll on markets, rumors are circulating that the Trump administration may assist certain sectors hit particularly hard by the virus. Heritage Capital President and CIO Paul Schatz joins Yahoo Finance’s Zack Guzman, Kristin Myers, along with CapitalistBook.com author Nathan Latka, to discuss.

Southwest Airlines Down on Coronavirus-Induced Q1 RASM View
Fri, 06 Mar 2020 16:12:04 +0000
Southwest Airlines (LUV) expects first-quarter 2020 operating revenues to decline between $200 and $300 million.

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