Deep-pocketed investors have adopted a bullish approach towards Southwest Airlines (NYSE:LUV), and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in LUV usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 18 extraordinary options activities for Southwest Airlines. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 50% leaning bullish and 38% bearish. Among these notable options, 10 are puts, totaling $690,756, and 8 are calls, amounting to $1,766,112.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $35.0 to $60.0 for Southwest Airlines over the last 3 months.

Volume & Open Interest Development

In today's trading context, the average open interest for options of Southwest Airlines stands at 2685.67, with a total volume reaching 13,200.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Southwest Airlines, situated within the strike price corridor from $35.0 to $60.0, throughout the last 30 days.

Southwest Airlines Option Volume And Open Interest Over Last 30 Days

Options Call Chart

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
LUV CALL TRADE BEARISH 01/15/27 $2.57 $1.83 $2.1 $60.00 $1.0M 927 5.0K
LUV CALL SWEEP BEARISH 03/13/26 $1.2 $1.16 $1.17 $40.50 $321.3K 47 2.7K
LUV PUT SWEEP BULLISH 03/20/26 $1.8 $1.55 $1.55 $40.00 $193.2K 18.2K 1.5K
LUV CALL TRADE BEARISH 04/17/26 $6.35 $6.3 $6.3 $35.00 $157.5K 3 250
LUV PUT TRADE BEARISH 04/17/26 $10.0 $10.0 $10.0 $50.00 $100.0K 468 0

About Southwest Airlines

Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 800 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights operated in a single, open-seating cabin configuration in a point-to-point network. In early 2026, Southwest will modify its cabins to offer some rows with extra legroom and will update its ticketing process and merchandising to offer assigned seats and more fare categories, including a basic economy class that will more directly compete with other airlines' offerings and appear for the first time in travel aggregators' search results.

After a thorough review of the options trading surrounding Southwest Airlines, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of Southwest Airlines

  • Currently trading with a volume of 4,858,201, the LUV's price is down by -0.94%, now at $41.17.
  • RSI readings suggest the stock is currently may be oversold.
  • Anticipated earnings release is in 44 days.

What The Experts Say On Southwest Airlines

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $58.0.

  • In a positive move, an analyst from UBS has upgraded their rating to Buy and adjusted the price target to $73.
  • Consistent in their evaluation, an analyst from Rothschild & Co keeps a Sell rating on Southwest Airlines with a target price of $35.
  • An analyst from TD Cowen upgraded its action to Buy with a price target of $66.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements.