Deep-pocketed investors have adopted a bearish approach towards Southwest Airlines LUV, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in LUV usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 11 extraordinary options activities for Southwest Airlines. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 18% leaning bullish and 72% bearish. Among these notable options, 7 are puts, totaling $907,641, and 4 are calls, amounting to $273,746.
Predicted Price Range
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $25.0 to $42.5 for Southwest Airlines over the last 3 months.
Insights into Volume & Open Interest
In today's trading context, the average open interest for options of Southwest Airlines stands at 2735.86, with a total volume reaching 17,069.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Southwest Airlines, situated within the strike price corridor from $25.0 to $42.5, throughout the last 30 days.
Southwest Airlines Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| LUV | PUT | TRADE | BULLISH | 10/18/24 | $1.03 | $0.98 | $0.98 | $27.50 | $531.6K | 6.2K | 8.1K |
| LUV | PUT | TRADE | NEUTRAL | 09/20/24 | $1.35 | $1.31 | $1.33 | $30.00 | $133.0K | 3.0K | 1.0K |
| LUV | CALL | SWEEP | BEARISH | 01/17/25 | $1.36 | $1.33 | $1.33 | $32.50 | $94.1K | 6.9K | 758 |
| LUV | PUT | SWEEP | BULLISH | 01/16/26 | $13.85 | $13.75 | $13.75 | $42.50 | $86.6K | 21 | 0 |
| LUV | CALL | SWEEP | BEARISH | 01/17/25 | $1.37 | $1.34 | $1.34 | $32.50 | $70.4K | 6.9K | 233 |
About Southwest Airlines
Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates over 800 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights operated in a single, open-seating cabin configuration in a point-to-point network. In 2025, Southwest will modify its cabins to offer some seats with extra legroom and will update its ticketing process to offer assigned seats.
Current Position of Southwest Airlines
- With a volume of 2,504,820, the price of LUV is down -2.24% at $28.6.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 43 days.
What The Experts Say On Southwest Airlines
A total of 1 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $35.0.
- Showing optimism, an analyst from Evercore ISI Group upgrades its rating to Outperform with a revised price target of $35.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Southwest Airlines with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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