Buy Alert: September 2, 2016

| September 2, 2016

Buy Alert:  September 2, 2016

 

Trade Details

Buy Southwest Airlines (LUV) October 21st 38 Calls for $1.00 or better (lower)

 

Why?

LUV has traded in a literal straight line for the last month, but the stock is due for an increase.  The airline’s fundamentals are solid across the board, yet the share price is still below the 50-day moving average.  With economic news continuing to improve by the week, we’re going to see buying interest in airlines – especially the industry leader.

We’re going to buy October calls.  Conservative investors can take profits at $39.  Aggressive investors can hold up to $42.  For risk control, conservative traders should exit at $34, while more aggressive traders can hold down to $32.

 

 Recent Activity

Southwest Airlines

 

Category: OTW Buy Alerts