Quantchabot has detected a new Bull Call Spread trade opportunity for SOUTHWEST AIRLINES (LUV) for the 2-Apr-2026 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LUV was recently trading at $54.75 and has an implied volatility of 42.43% for this period. Based on an analysis of the options available for LUV expiring on 2-Apr-2026, there is a 34.19% likelihood that the underlying will close within the analyzed range of $54.82-$63.59 at expiration. In this scenario, the average linear return for the trade would be 11.00%.
Big 7.12% Change: After closing the last trading session at $51.11, SOUTHWEST AIRLINES opened today at $52.67 and has reached a high of $54.78.
Trade approach: A movement as big as 7.12% is a significantly bullish indicator, so this trade is designed to be profitable if LUV maintains its current direction and does not revert back to pricing on the bearish side of $54.75 on 2-Apr-2026. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if SOUTHWEST AIRLINES closes at or above $53.33 on 2-Apr-2026. Based on our risk-neutral analysis, there is a 57.40% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.
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