Southwest Airlines's Options Frenzy: What You Need to Know

Investors with a lot of money to spend have taken a bullish stance on Southwest Airlines 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 10 uncommon options trades for Southwest Airlines.

This isn’t normal.

The overall sentiment of these big-money traders is split between 60% bullish and 40%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $899,494, and 3 are calls, for a total amount of $235,523.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $30.0 to $42.5 for Southwest Airlines over the recent three months.

Volume & Open Interest Trends

In today’s trading context, the average open interest for options of Southwest Airlines stands at 1400.0, with a total volume reaching 3,761.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Southwest Airlines, situated within the strike price corridor from $30.0 to $42.5, throughout the last 30 days.

Southwest Airlines Call and Put Volume: 30-Day Overview

Largest Options Trades Observed:

About Southwest Airlines

Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 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. In late 2025, Southwest will modify its cabins to offer some seats with extra legroom and will update its ticketing process to offer assigned seats.

Having examined the options trading patterns of Southwest Airlines, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Where Is Southwest Airlines Standing Right Now?

• With a trading volume of 5,160,717, the price of LUV is down by -0.66%, reaching $31.38.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 22 days from now.

Professional Analyst Ratings for Southwest Airlines

In the last month, 5 experts released ratings on this stock with an average target price of $34.4.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access.
* An analyst from Raymond James has decided to maintain their Outperform rating on Southwest Airlines, which currently sits at a price target of $42.
* Maintaining their stance, an analyst from JP Morgan continues to hold a Underweight rating for Southwest Airlines, targeting a price of $30.
* Showing optimism, an analyst from Melius Research upgrades its rating to Hold with a revised price target of $34.
* Consistent in their evaluation, an analyst from Citigroup keeps a Sell rating on Southwest Airlines with a target price of $30.
* An analyst from UBS has elevated its stance to Neutral, setting a new price target at $36.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Southwest Airlines with Benzinga Pro for real-time alerts.