📉 LUV Bearish Thesis
Despite Southwest Airlines appointing a new CEO, the chart suggests bearish price action rather than immediate optimism. Here’s why:
🔻 Key Bearish Levels:
Break below $30 → Downside target: $28
Break below $28 → Next target: $24-$22 (potential capitulation zone)
🛑 Bearish Trade Plan:
Confirmation: If LUV trades under $28 with strong volume, expect accelerated selling.
Put Option Targets: 2/21 $30 puts or $28 puts
Trigger: A rejection at resistance (like $30.50) or continued unusual put flow signals a solid entry.
📈 LUV Bullish Case (Reversal Play)
If buyers step in, a bullish move could develop. Watch these levels:
✅ Key Bullish Levels:
Support hold at $30.50 → Next upside target: $32.79
Breakout above $32.79 → Target $33-$35
🛑 Bullish Trade Plan:
Confirmation: If $30.50 holds with rising volume, we could see a reversal.
Call Option Targets: Watch 2/21 $33 Calls (currently down 50%) to see if volume returns.
Trigger: If call buying picks up and stock reclaims $30.50, momentum could shift upward.
🚀 Unusual Whales Insights & Smart Money Flow
A large play was made on 2/21 $33 calls, but it's down 50%, meaning trapped buyers.
If smart money doubles down on calls, a bullish reversal could happen.
If put volume increases, expect continued downside pressure.
🎯 Final Trading Strategy
1️⃣ Bearish Plan: Enter puts if LUV stays below $30 and unusual put flow increases.
2️⃣ Bullish Plan: Look for bullish volume at $30.50+ and enter calls if call flow strengthens.
3️⃣ Confirmation Tools: Watch VWAP, volume spikes, and unusual options activity to confirm entries.
Despite Southwest Airlines appointing a new CEO, the chart suggests bearish price action rather than immediate optimism. Here’s why:
🔻 Key Bearish Levels:
Break below $30 → Downside target: $28
Break below $28 → Next target: $24-$22 (potential capitulation zone)
🛑 Bearish Trade Plan:
Confirmation: If LUV trades under $28 with strong volume, expect accelerated selling.
Put Option Targets: 2/21 $30 puts or $28 puts
Trigger: A rejection at resistance (like $30.50) or continued unusual put flow signals a solid entry.
📈 LUV Bullish Case (Reversal Play)
If buyers step in, a bullish move could develop. Watch these levels:
✅ Key Bullish Levels:
Support hold at $30.50 → Next upside target: $32.79
Breakout above $32.79 → Target $33-$35
🛑 Bullish Trade Plan:
Confirmation: If $30.50 holds with rising volume, we could see a reversal.
Call Option Targets: Watch 2/21 $33 Calls (currently down 50%) to see if volume returns.
Trigger: If call buying picks up and stock reclaims $30.50, momentum could shift upward.
🚀 Unusual Whales Insights & Smart Money Flow
A large play was made on 2/21 $33 calls, but it's down 50%, meaning trapped buyers.
If smart money doubles down on calls, a bullish reversal could happen.
If put volume increases, expect continued downside pressure.
🎯 Final Trading Strategy
1️⃣ Bearish Plan: Enter puts if LUV stays below $30 and unusual put flow increases.
2️⃣ Bullish Plan: Look for bullish volume at $30.50+ and enter calls if call flow strengthens.
3️⃣ Confirmation Tools: Watch VWAP, volume spikes, and unusual options activity to confirm entries.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.