Southwest Airlines Unusual Options Activity

Investors with a lot of money to spend have taken a bullish stance on Southwest Airlines (NYSE:LUV).

And retail traders should know.

We noticed this today when the trades 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.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 19 uncommon options trades for Southwest Airlines.

This isn't normal.

The overall sentiment of these big-money traders is split between 52% bullish and 15%, bearish.

Out of all of the special options we uncovered, 13 are puts, for a total amount of $1,216,660, and 6 are calls, for a total amount of $233,045.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $22.5 to $40.0 for Southwest Airlines over the recent three months.

Analyzing Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Southwest Airlines's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Southwest Airlines's substantial trades, within a strike price spectrum from $22.5 to $40.0 over the preceding 30 days.

Southwest Airlines Option Activity Analysis: 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 PUT TRADE NEUTRAL 01/16/26 $2.81 $2.62 $2.72 $22.50 $408.0K 2.9K 1.5K
LUV PUT SWEEP NEUTRAL 06/21/24 $1.09 $1.07 $1.07 $25.00 $242.6K 8.6K 2.3K
LUV PUT SWEEP BEARISH 06/21/24 $0.97 $0.92 $0.97 $25.00 $144.6K 8.6K 4.0K
LUV PUT SWEEP BULLISH 09/20/24 $5.4 $5.3 $5.3 $30.00 $99.6K 2.2K 193
LUV PUT SWEEP BULLISH 03/21/25 $1.82 $1.73 $1.73 $22.50 $89.6K 6.3K 518

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.

After a thorough review of the options trading surrounding Southwest Airlines, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Southwest Airlines's Current Market Status Trading volume stands at 9,773,323, with LUV's price down by -4.62%, positioned at $25.3. RSI indicators show the stock to be is currently neutral between overbought and oversold. Earnings announcement expected in 57 days.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Southwest Airlines options trades with real-time alerts from Benzinga Pro.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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