TopOptionAlert
Oct 22, 7:08 AM
$LUV NOV20 41C · still actionable
Zone:
$39.60 to
$40.16
Invalidation: close under
$38.50
Objectives:
$41.74, then
$43.16
The math: up 4.7% to the first objective and 8.2% to the second, against 3.5% risk on the invalidation, better than 2 to 1 to the second
This is a simple swing after a big earnings night. Southwest reported revenue of 8.42 billion dollars, up 21.2 percent from a year ago, and earnings of 66 cents a share that beat expectations, yet the stock still held near 39.37 at its low. What that means for you is the report is now out in the open and buyers defended the floor, so the question is whether it can walk back toward the fall highs one level at a time.
P.S. Watch 41.01, the high from Wednesday. A close above it would tell you buyers mean it.
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