Southwest (LUV) Offering Possible 8.7% Return Over the Next 27 Calendar Days

Southwest's most recent trend suggests a bullish bias. One trading opportunity on Southwest is a Bull Put Spread using a strike $50.00 short put and a strike $45.00 long put offers a potential 8.7% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $50.00 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 $45.00 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 45.29 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

Southwest Airlines to Discuss Third Quarter 2019 Financial Results on October 24, 2019
Thu, 17 Oct 2019 21:12:00 +0000
DALLAS , Oct. 17, 2019 /PRNewswire/ — Southwest Airlines Co. (NYSE: LUV) invites you to listen to a live webcast of its third quarter 2019 financial results. Details are as follows: When: Thursday, October …

Boeing 737 Max Return Thrown Into Further Doubt After Latest Delays
Thu, 17 Oct 2019 20:05:31 +0000
Southwest canceled Boeing 737 Max flights until Feb. 8, after Air Canada Wednesday pulled the troubled jet from its schedules through Feb. 14.

Phoenix Civic Improvement Corporation, AZ — Moody's assigns A1 to Phoenix (City of) AZ Airport Enterprise's Series 2019A-C Junior Lien Airport Revenue Bonds; outlook stable
Thu, 17 Oct 2019 17:56:12 +0000
Moody's Investors Service (“Moody's”) has assigned A1 to Phoenix (City of) AZ Airport Enterprise's $337.0 million Junior Lien Airport Revenue Bonds, Series 2019A (Non-AMT), $400.3 million Junior Lien Airport, Revenue Bonds, Series 2019B (AMT) and $30.0 million Junior Lien Airport Revenue Refunding Bonds, Taxable Series 2019C. The Aa3 reflects the airport's ability to absorb the increased leveraged of the roughly $2 billion capital plan though fiscal 2026 while maintaining competitive airline costs and moderate debt service coverage ratios on Moody's net revenue above 1.4x. Growth of the local economy that led to increased O&D enplanements, despite the loss of connecting enplanements in fiscal 2017, has led to an improvement in the airport's financial operating results, including above median debt-service coverage and below median cost per enplanement.

Boeing MAX Return Timeline Extended by Air Canada
Thu, 17 Oct 2019 17:38:27 +0000
Doubt over Boeing's 737 MAX returning to service in early January is growing. Air Canada has removed all MAXs from its flying schedule until February 14.

Norfolk Southern (NSC) to Post Q3 Earnings: What's in Store?
Thu, 17 Oct 2019 15:51:03 +0000
Soft freight volumes are likely to have hurt Norfolk Southern's (NSC) in Q3. However, cost-cutting measures are expected to have boosted its bottom line.

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