TopOptionAlert
$LUV NOV20 41C · still actionable
Zone: $39.37 to $39.93
Invalidation: close under $38.50
Objectives: $41.74, then $43.16
The math: up 5.3% to the first objective and 8.9% to the second, against 2.9% risk on the invalidation, better than 3 to 1 to the second
Dear friend, picture a plane that kept taxiing back to the same gate and finally turned toward the runway. That is this swing setup in plain terms. Southwest dipped to 38.50 today, buyers stepped in, and it closed at 39.65 on heavier than usual volume, which means real hands wanted it down there. Tomorrow, October 21, brings third quarter earnings, and a good print could be the push that carries it first toward that old ceiling near 41.74 and then toward 43.16.
P.S. Delta and United also rose more than 2 percent today, so this was lift across the airlines, not one lonely ticket.
2
