1. MONTHLY: BUY ZONE. Support at $$40. Next level is $44 and after that would be $46, then $54. Therefore, BUY ZONE possibly big move to upside.
2. DAILY: BUY ZONE with next resistance b/w $44-$46.
Trade idea 9/18/20:
SHORT, UNHEDGED ATM STRADDLE: Will sell 1 call and 1 put ATM. Historically, for purchased thursday and sold next day (friday), this has won 8 of last 9 (about 90%) w/ about 50% avg. return. Analysis above shows we are expecting LUV to move BULLISH so it should make the straddle profitable this week as well.
2. DAILY: BUY ZONE with next resistance b/w $44-$46.
Trade idea 9/18/20:
SHORT, UNHEDGED ATM STRADDLE: Will sell 1 call and 1 put ATM. Historically, for purchased thursday and sold next day (friday), this has won 8 of last 9 (about 90%) w/ about 50% avg. return. Analysis above shows we are expecting LUV to move BULLISH so it should make the straddle profitable this week as well.