LUV Next Move

📉 LUV Bearish Thesis
Despite Southwest Airlines appointing a new CEO, the chart suggests bearish price action rather than immediate optimism. Here’s why:

🔻 Key Bearish Levels:

Break below $30 → Downside target: $28
Break below $28 → Next target: $24-$22 (potential capitulation zone)
🛑 Bearish Trade Plan:

Confirmation: If LUV trades under $28 with strong volume, expect accelerated selling.
Put Option Targets: 2/21 $30 puts or $28 puts
Trigger: A rejection at resistance (like $30.50) or continued unusual put flow signals a solid entry.
📈 LUV Bullish Case (Reversal Play)
If buyers step in, a bullish move could develop. Watch these levels:

✅ Key Bullish Levels:

Support hold at $30.50 → Next upside target: $32.79
Breakout above $32.79 → Target $33-$35
🛑 Bullish Trade Plan:

Confirmation: If $30.50 holds with rising volume, we could see a reversal.
Call Option Targets: Watch 2/21 $33 Calls (currently down 50%) to see if volume returns.
Trigger: If call buying picks up and stock reclaims $30.50, momentum could shift upward.
🚀 Unusual Whales Insights & Smart Money Flow
A large play was made on 2/21 $33 calls, but it's down 50%, meaning trapped buyers.
If smart money doubles down on calls, a bullish reversal could happen.
If put volume increases, expect continued downside pressure.
🎯 Final Trading Strategy
1️⃣ Bearish Plan: Enter puts if LUV stays below $30 and unusual put flow increases.
2️⃣ Bullish Plan: Look for bullish volume at $30.50+ and enter calls if call flow strengthens.
3️⃣ Confirmation Tools: Watch VWAP, volume spikes, and unusual options activity to confirm entries.