Schwab Network on $LUV (Nov 3, 2026)

You have chosen Southwest Airlines as your first deal today. How do you view "Southwest" at the moment? I have somewhat softened this week the names we will be talking about, perhaps those that have been far from active trading.

And she knows, calmly, even in the current energy situation we are experiencing. Airlines are doing well, and this stock appears to be one of the good names that shows very real upside potential.

It has been stated that "Southwest" is moving quietly, and we can see that we have begun to form a channel that is slowly moving upwards. What do you see in the technical aspects here?

Well, what's most interesting is that it appears we might be breaking the channel you're noticing here upwards. To go back a little, we had some previous highs around the 53-54 level.

We have connected these successive peaks with a downward-sloping trend line. We have already broken through that blue line after the earnings announcement . Now we have an upward trend line with a very slight slope here in white.

If we copy it and place it across the peaks, it forms our price channel. But today's price action has just started to push above that point here. We saw some gains during the day that went above that level yesterday, but it did not close above the price channel limit here.

We can also see here a series of lower points and then our subsequent higher points at approximately the 40.50 level. Therefore, exceeding this level would be of great interest to market optimists.

We have seen a series of highs here near 46, and another notable high at 49.73. Meanwhile, on the downside, we had a notable dip at 42, as it was our most recent pullback during our upward run here.

We also had a low point here at 38.50. Therefore, looking at the moving averages we are tracking here, we see that they are mostly ranked from fastest to slowest. The 21-day exponential moving average, shown in blue-green, is about to cross above the 63-day moving average, represented in gold.

The closest average currently is the 5-day weekly average, at 43.55. This shows that the trend is still in an acceleration phase here. Watch the moving averages to see if they start to converge again towards each other.

Sorry, looking for signs of a slowing trend here. The Relative Strength Index is at 62, we are above the 50 midline, but we have not recorded any significant new highs yet. Keep an eye on this change as well for further bullish optimism.

We can also see that the volume profile shows us the most intense trading area here between 40 and 43 with a control point at 41.39. So, we are pushing higher above a heavy trading area here.

Things pick up again once we start getting to this area, around 47 or 48.

Mike, do you expect a breakthrough here as well for Southwest? It looks like we are looking at the exact same graph. But, yes. I want to surpass those recent highs at 44.77.

Implied volatility is extremely low. So, when it's very low, especially with a stock that moves as airlines generally do and the "Love" stock, I would choose to calendar up buy options.

I am looking at the call options calendar for November 13th versus November 20th at an execution price of 47. The same area we were both looking at . This is where it appears that this may represent a short-term peak.

We don't even know if he'll make it there, but that's where I'm watching . It is an inexpensive calendar. You can buy it, maybe right now, for 30 cents. You might even be able to buy it for less than that.

But the return I expect is 45 cents. This means I get a ratio of one and a half to one.

And now we see Southwest's stock moving upwards. It rose by about 0.8 percent to reach 44.31. Do you both agree that he looks ready to take off?