Southwest Airlines Stock Options
| LUV Stock | USD 34.83 0.68 1.99% |
Southwest Airlines' latest option contracts expiring on June 20th 2025 are carrying combined implied volatility of 0.53 with a put-to-call open interest ratio of 0.99 over 32 outstanding agreements suggesting . The total put volume is at 1.2 K, with calls trading at the volume of 526. This yields a 2.24 put-to-call volume ratio.
Open Interest Against June 20th 2025 Option Contracts
Southwest Airlines option prices can potentially be used to forecast stock returns because most option chains provide information not only about the current prices but also about the future conditions in Southwest Airlines' lending market. For example, when Southwest Airlines' puts are not actively trading or completely missing in the marketplace, investors can use it to internalize expected shorting costs. So if an investor is writing a put option on Southwest Airlines, he or she must hedge the risk by shorting Southwest Airlines stock over its option's life.
2025-06-20
The chart above shows Southwest Airlines' distribution of open interest by maturity on contracts that have not yet been settled. The area between the two highest points is the projection of the price at expiration. Southwest Airlines' open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Southwest Airlines' option, there is no secondary market available for investors to trade.
Southwest Airlines Maximum Pain Price Across 2025-06-20 Option Contracts
Max pain occurs when Southwest Airlines' market makers reach a net positive position across all Southwest Airlines' options at a strike price where option holders stand to lose the most money. By contrast, Southwest Airlines' option sellers may reap the most after selling more options than buying, causing them to expire worthless.
In The Money vs. Out of Money Option Contracts on Southwest Airlines
Analyzing Southwest Airlines' in-the-money options over time can help investors to take a profitable long position in Southwest Airlines regardless of its overall volatility. This is especially true when Southwest Airlines' options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Southwest Airlines' options could be used as guardians of the underlying stock as they move almost dollar for dollar with Southwest Airlines' stock while costing only a fraction of its price.
Southwest Airlines In The Money Call Balance
When Southwest Airlines' strike price is surpassing the current stock price, the option contract against Southwest Airlines stock is said to be in the money. When it comes to buying Southwest Airlines' options that are 'In the Money' or 'Out of the Money', the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
While 'out-of-the-money' option contracts written on Southwest Airlines are typically viewed as the more aggressive, there are potential upsides to purchasing these types of options contracts. For one, the cost to buy an 'Out of the Money' option is lower than the cost to buy an 'In the Money' option. This cost-benefit is due to the fact that at the time of the purchase, 'Out of the Money' contracts have no intrinsic value. So, while the potential for a 100% loss is more significant, the cost and risk to enter the trade are lower.
Southwest Current Options Market Mood
Southwest Airlines' open interest and total value indicators provide investors with the necessary information to digest the overall options buildup for its expiring contracts. In addition, it helps Southwest Stock's traders understand whether a recent fall or rise in the market is unreasonable and if the time has come to take contrarian positions. These ratios are calculated based on options trading volumes and current open interest.
Put-to-Call Open Interest
Put-to-Call Volume
Unfortunately, most Southwest Airlines' options investors are not very successful. Southwest Airlines' option open interest and volume spread between outstanding puts and calls are regarded by many investors as reliable indicators of the overall future market direction.
Rule 16 of the current Southwest contract
Base on the Rule 16, the options market is currently suggesting that Southwest Airlines will have an average daily up or down price movement of about 0.0331% per day over the life of the 2025-06-20 option contract. With Southwest Airlines trading at USD 34.83, that is roughly USD 0.0115. If you think that the market is fully incorporating Southwest Airlines' daily price movement you should consider buying Southwest Airlines options at the current volatility level of 0.53%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
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Purchasing Southwest Airlines options can give investors a meaningful hedge against losses and, therefore, could be used conservatively to decrease the volatility of your portfolio. However, many options could also amount to little more than gambling, significantly enhancing your overall portfolio risk. One simple example of these aggressive strategies is the sale of "uncovered" Southwest calls. Remember, the seller must deliver Southwest Airlines stock to the call owner when a call is exercised.
Southwest Airlines Option Chain
When Southwest Airlines' strike price is surpassing the current stock price, the option contract against Southwest Airlines stock is said to be in the money. When it comes to buying options that are ITM or OTM, the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
Southwest Airlines' option chain is a display of a range of information that helps investors for ways to trade options on Southwest. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Southwest. It also shows strike prices and maturity days for a Southwest Airlines against a given expiration period. The table below combines all the option information in the form of a chain but before you use it, remember that it entails significant risk and it is not for everyone. | Open Int | Strike Price | Current Spread | Last Price | |||
Call | LUV250620C00050000 | 84 | 50.0 | 0.01 - 0.15 | 0.05 | Out |
Call | LUV250620C00047500 | 448 | 47.5 | 0.0 - 0.14 | 0.15 | Out |
Call | LUV250620C00045000 | 643 | 45.0 | 0.12 - 0.16 | 0.13 | Out |
Call | LUV250620C00042500 | 2255 | 42.5 | 0.29 - 0.34 | 0.27 | Out |
Call | LUV250620C00040000 | 2825 | 40.0 | 0.66 - 0.69 | 0.67 | Out |
Call | LUV250620C00037500 | 3505 | 37.5 | 1.31 - 1.47 | 1.36 | Out |
Call | LUV250620C00035000 | 13204 | 35.0 | 2.38 - 2.44 | 2.44 | Out |
Call | LUV250620C00032500 | 11069 | 32.5 | 3.05 - 4.0 | 3.85 | In |
Call | LUV250620C00030000 | 2321 | 30.0 | 5.35 - 5.9 | 5.7 | In |
Call | LUV250620C00027500 | 919 | 27.5 | 6.95 - 8.05 | 7.85 | In |
Call | LUV250620C00025000 | 1607 | 25.0 | 10.2 - 10.35 | 10.1 | In |
Call | LUV250620C00022500 | 108 | 22.5 | 12.6 - 12.75 | 12.05 | In |
Call | LUV250620C00020000 | 128 | 20.0 | 14.05 - 15.2 | 11.05 | In |
Call | LUV250620C00017500 | 72 | 17.5 | 16.65 - 17.65 | 13.47 | In |
Call | LUV250620C00015000 | 63 | 15.0 | 18.95 - 21.6 | 18.7 | In |
Call | LUV250620C00012500 | 4 | 12.5 | 22.4 - 22.6 | 19.89 | In |
Put | LUV250620P00012500 | 4 | 12.5 | 0.0 - 0.3 | 0.12 | Out |
Put | LUV250620P00015000 | 12 | 15.0 | 0.0 - 0.21 | 0.05 | Out |
Put | LUV250620P00017500 | 1199 | 17.5 | 0.0 - 0.16 | 0.08 | Out |
Put | LUV250620P00020000 | 1561 | 20.0 | 0.0 - 0.1 | 0.05 | Out |
Put | LUV250620P00022500 | 12185 | 22.5 | 0.04 - 0.13 | 0.08 | Out |
Put | LUV250620P00025000 | 3385 | 25.0 | 0.17 - 0.22 | 0.2 | Out |
Put | LUV250620P00027500 | 3406 | 27.5 | 0.35 - 0.4 | 0.37 | Out |
Put | LUV250620P00030000 | 5307 | 30.0 | 0.66 - 0.72 | 0.73 | Out |
Put | LUV250620P00032500 | 6898 | 32.5 | 1.28 - 1.46 | 1.31 | Out |
Put | LUV250620P00035000 | 3838 | 35.0 | 2.26 - 2.35 | 2.32 | Out |
Put | LUV250620P00037500 | 497 | 37.5 | 3.65 - 4.65 | 6.78 | In |
Put | LUV250620P00040000 | 149 | 40.0 | 5.5 - 5.65 | 9.93 | In |
Put | LUV250620P00042500 | 246 | 42.5 | 6.95 - 7.95 | 9.4 | In |
Put | LUV250620P00045000 | 0 | 45.0 | 10.1 - 11.05 | 13.35 | In |
Put | LUV250620P00047500 | 0 | 47.5 | 12.6 - 13.7 | 14.35 | In |
Put | LUV250620P00050000 | 0 | 50.0 | 15.1 - 16.25 | 18.55 | In |
Southwest Airlines Selling And Marketing Expenses Over Time
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Southwest Airlines Market Cap Over Time
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Southwest Total Stockholder Equity
Total Stockholder Equity |
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Southwest Airlines Corporate Directors
| Thomas Gilligan | Independent Director | Profile | |
| Nancy Loeffler | Independent Director | Profile | |
| Douglas Brooks | Independent Director | Profile | |
| John Montford | Independent Director | Profile |
Additional Tools for Southwest Stock Analysis
When running Southwest Airlines' price analysis, check to measure Southwest Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Southwest Airlines is operating at the current time. Most of Southwest Airlines' value examination focuses on studying past and present price action to predict the probability of Southwest Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southwest Airlines' price. Additionally, you may evaluate how the addition of Southwest Airlines to your portfolios can decrease your overall portfolio volatility.