LUV Receives A Vote Of Confidence

A large bullish bet was placed on LUV on Friday by an option trader who sold 15’000 April 55 puts for 0.9 (0.9 bid – 1.0 ask). The volume was significantly higher than the open interest suggesting that this is a new position.

screen-shot-2017-03-05-at-8-56-51-am

By selling 15’000 April puts, the trader committed over $17m into the trade and will bank $1.3m of profit, should the stock stay above $55 by expiration in April.

The stock has had an impressive run for the last several months. The company issued a strong recent earnings report, Buffett reported owning LUV and its trailing twelve months PE ratio stands at 15.31 compared to 20.20 on S&P 500.

screen-shot-2017-03-05-at-8-58-02-am

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s