LUV
Southwest Airlines
Rating 4.2 / 5 Recommendation Open trade

Credit put spread analysis · · Good setup

IV Rank
58
Implied volatility percentile
Trend
0.66
Long-term trend score
Safety
4/9
Quality checks passed
Drop
-6.9%
Day 5 of drop
1Y Change
15.5%
Trailing 12 months
Earnings
Clear
No event in window

AI analysis

The stock has dropped 6. 89% which could indicate a good entry point for a credit put spread. The stock is up 15.

5% over the past 2 months with a trend of 66% and safety rating of 4/9. The IV is at 58%, which is relatively high. Based on the current stock price of $43.

90, I recommend selling a put at the $40 strike price and buying a put at the $36 strike price, which would result in a spread width of approximately 10%.

Recommended credit put spread

AI-suggested setup based on the latest screen. Expiration Apr 9, 2026.

Sell
$40.00
Short put (collects premium)
Buy
$36.00
Long put (caps risk)
Width
$4.00
Estimated credit
$3.25
Max risk
$0.75
Return on risk
433.3%
Expiration
Apr 9, 2026

For entertainment purposes only. Not a recommendation to trade. Disclaimer.