Fuel Costs Hit Southwest Airlines Stock

Options bulls appear to be buying in on today's dip

Deputy Editor
Dec 13, 2023 at 10:57 AM
facebook X logo linkedin


The shares of Southwest Airlines co (NYSE:LUV) are sliding today, after the company raised its fourth-quarter fuel cost forecast, though also noting strong leisure demand. At last look, LUV was down 6% at $28.49. 

Today's sharp drop puts the stock on track to snap its four-week win streak. Last session, the equity hit its highest level since September, though the stock could've already been due for short-term dip, as its 14-day relative strength index (RSI) of 91.9 sits firmly in "overbought" territory. Since the start of the year, LUV is down 15.1%. 

Interestingly, call traders are targeting Southwest Airlines stock today. So far, 12,000 calls have been exchanged -- triple the amount typically seen at this point -- in comparison to 4,143 puts. Expiring at the end of this week, the December 30 call is the most popular contract. 

Options look like a good way to go when weighing in on LUV, too. The stock's Schaeffer's Volatility Scorecard (SVS) of 98 out of 100 means the stock has usually exceeded volatility expectations over the past year. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI