LUV Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: LUV benefits from improved operational efficiencies and rising travel demand, signaling potential price recovery. Implied volatility suggests optimism.




Bearish Case: Regulatory lawsuits and labor issues pose significant threats to LUV's stability. Historical volatility and ongoing disruptions could pressure the stock downward.




Potential Outcomes:
  • Operational efficiency boosts bookings (60%).
  • Regulatory actions harm reputation (30%).
  • Labor disputes disrupt operations (10%).




Trading Oracle: Consider a bullish debit spread (Helium Long Volatility) with LUV $32 calls, selling $34 calls, expiring in March. Leverage anticipated holiday travel and operational improvements for maximum potential on elevated implied volatility.



January 22, 2025


Southwest Airlines Forecast

LUV        Southwest Airlines











Correlated Assets

Assets that tend to move strongly with LUV



AMLX Forecast + Options Trading Strategies   AMLX  AMLX (0.82)


SOFI Forecast + Options Trading Strategies   SOFI  SoFi (0.79)


GIII Forecast + Options Trading Strategies   GIII  G-III Apparel (0.78)


VSCO Forecast + Options Trading Strategies   VSCO  Victoria's Secret (0.77)


ACN Forecast + Options Trading Strategies   ACN  Accenture (0.76)



Uncorrelated Assets

Assets with little price relationship to LUV



ADT Forecast + Options Trading Strategies   ADT  ADT (-0.0)


CORN Forecast + Options Trading Strategies   CORN  Teucrium Corn (-0.0)


CPA Forecast + Options Trading Strategies   CPA  Copa (0.01)


DNN Forecast + Options Trading Strategies   DNN  Denison Mines (0.01)


DKS Forecast + Options Trading Strategies   DKS  Dicks Sporting Goods (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against LUV



ADM Forecast + Options Trading Strategies   ADM  Archer Daniels Midland (-0.73)


OGN Forecast + Options Trading Strategies   OGN  Organon (-0.74)


ACB Forecast + Options Trading Strategies   ACB  Aurora Cannabis (-0.74)


CRON Forecast + Options Trading Strategies   CRON  Cronos (-0.74)


ST Forecast + Options Trading Strategies   ST  Sensata (-0.77)









Become a more profitable investor with AI optimized trading strategies






×

Chat with LUV


 Ask any question about LUV!