Call Options on LUV on 12/29/2014

Bullish Cup & Handle on LUVSouthwest Airlines Co. (LUV) operates passenger airlines that provide scheduled air transportation services in the United States.

As of December 31, 2012, the company operated 694 aircraft, including 606 Boeing 737 aircraft and 88 Boeing 717 aircraft.

It served 97 destinations in 41 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 6 near-international countries, including Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, and Bermuda.

It also sells frequent flyer points and/or credits and related services to business partners participating in the Rapid Rewards frequent flyer program, including car rental agencies, hotels, restaurants, and retail locations.

Shares have formed a bullish "cup & handle" and higher share prices are expected for this stock.

 

52-Week Trading Range: $18.74 - $42.94

Last Trade: $41.55

Trade

  • Buy 1 January $40.00 Call at $1.85
  • For a net debit of $1.85

Profit/Loss Analysis

  • Breakeven at $41.85
  • Maximum profit is unbounded
  • Maximum loss is ($185.00) at strike of $40.00

Closing Summary

  • Sold 1 January $40.00 Call at $0.00

Position closed on 1/20/2015 at price of $0.00 with a -100.00% loss in 21 days.

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