Investors with a lot of money to spend have taken a bearish stance on Southwest Airlines LUV.
And retail traders should know.
We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with LUV, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 8 options trades for Southwest Airlines.
This isn't normal.
The overall sentiment of these big-money traders is split between 25% bullish and 75%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $54,540, and 7, calls, for a total amount of $669,761.
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 $20.0 to $50.0 for Southwest Airlines over the last 3 months.
Volume & Open Interest Trends
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Southwest Airlines's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Southwest Airlines's whale activity within a strike price range from $20.0 to $50.0 in the last 30 days.
Southwest Airlines Option Volume And Open Interest Over Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| LUV | CALL | SWEEP | BEARISH | 01/16/26 | $11.9 | $11.6 | $11.55 | $20.00 | $462.0K | 1.1K | 405 |
| LUV | CALL | SWEEP | BEARISH | 06/20/25 | $4.35 | $4.25 | $4.25 | $30.00 | $61.6K | 337 | 145 |
| LUV | PUT | TRADE | BEARISH | 01/17/25 | $15.15 | $15.05 | $15.15 | $45.00 | $54.5K | 361 | 36 |
| LUV | CALL | TRADE | BULLISH | 01/16/26 | $0.79 | $0.66 | $0.79 | $50.00 | $31.5K | 1.0K | 600 |
| LUV | CALL | TRADE | BULLISH | 01/17/25 | $6.1 | $6.0 | $6.07 | $25.00 | $30.3K | 5.0K | 69 |
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.
Following our analysis of the options activities associated with Southwest Airlines, we pivot to a closer look at the company's own performance.
Current Position of Southwest Airlines
- With a volume of 7,380,511, the price of LUV is up 0.64% at $29.7.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 49 days.
What Analysts Are Saying About 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.
- An analyst from Evercore ISI Group upgraded its action to Outperform with a 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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