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Bought to Open LUV IC at 0.65

pman1972 posted on 05/06/08 at 04:03 PM (Note posted 5 days after the trade)

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LUV IC 1.16 0.00 [0.0%]

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Users Bought (30 Days) 1 (100%)
Users Sold (30 Days) 0 (0%)
Market Cap 6.65B
52-Week High 16.77
52-Week Low 7.05
10 Day Volume 9.87M
P/E 19.02
EPS (Trailing 12 Mos.) 0.47
1Day 5Day 1Mo 3Mo 6Mo 1Yr

Transaction: Bought to Open
Symbol: LUV IC
Quantity: Not Shared
Price: $0.65
Value: $Not Shared.
Stop Order: No @ $N/A
Target Price: $0.00

I watched Southwest a bit and jumped in when their stock price was just above their 52wk low.  I'm a little skeptical about the airline inudstry and decided to buy an option to minimize any losses.  Technically, the term "skeptical" should translate into "don't do it", but this option is fairly cheap with a strike price of $15.

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Posted by pman1972 on 05/06/08 at 04:03 PM

Tag It | 1 user tagged it: LUV IC, option, buyopen, airlines, Southwest Airlines

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WallStreetKing

Member since: Mar 07
Trades Not Shared
Trade Notes 41
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Age: 40's
NC UNITED STATES
WallStreetKing
Posted May 06, 2008 (07:57PM)

Airlines will try to paint a rosey picture with seat miles, the truth fuel costs, maintenance costs, ect will be a continueing negative. I am hyped on Luv though, thanks for showing your trade note,  the OTM $15 CALL for september seems to be a better conservative play for southwest. I was looking at the playbook to see if there was something for safety on the downside. like cash covered put or protective put. looking at the option chain June or Sept put for strike of $10.

What do you think?

PEACE

 

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pman1972

Member since: Feb 08
Trades 261
Trade Notes 66
Blog Posts 0
Sr. Systems Analyst
Age: 30's
Woodbridge, VA
pman1972
Posted May 07, 2008 (02:59AM)

I think if anyone could do it Southwest could.  Unfortunately, I'm a newbie and definitely not a financial advisor.  I still think Southwest can pull off a September $15 call.  Your mileage may vary!

Hope this helps

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