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3 Airline Stocks to Sell or Short

The turbulence around AAL and others makes them attractive short-selling targets

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Airline Stocks: Southwest Airlines (LUV)

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Southwest Airlines (LUV) breached its lower Bollinger Band on an intraday basis on Tuesday for the first time since last August after the Wall Street Journal published a story last week on the company’s troubles with labor unrest, higher costs and its bygone days as a nimble upstart.

LUV also has seen its price advantage over rival domestic carriers dwindle during the past few years — with Southwest’s average one-way fares rising 21% since 2008.

Shares of LUV haven’t suffered a significant downtrend since early 2012 and are overdue for a correction after more than tripling since then.

I’ve recommended the LUV April and May 23 puts.

Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters, as well as Mirhaydari Capital Management, a registered investment advisory firm.

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