Southwest Airlines Example

About Southwest Airlines

Southwest Airlines is the largest low-cost carrier (LCC) in North America and the only US-listed airline to have an investment grade credit rating. Its low-cost operations, domestic US leisure focus, highly experienced management team, and strong balance sheet helped the company to weather the COVID-19 pandemic better than peers. The team believed it would be a key beneficiary as the US economy re-opens and consumer demand normalises on the successful rollout of a COVID-19 vaccine. This was a proprietary trading idea of the desk after extensive market/sector analysis. The team also consulted with our in-house aviation expertise as well as third party research to help to inform this view.

The Trades

As you’ll see in the chart and the table below – the team bought and sold this idea two times as part of the Best 8 basket between June and December 2020, generating strong trading profits each time. This example highlights the benefit of partnering with a team that not only can generate strong trading ideas for clients but can also navigate short-term volatility, gauge entry and exit points, and stick to strict money management discipline – all necessary ingredients for a successful trade.

southwest_luv-chart-2020

 

StockBuy DateSell DateProfit*
Southwest Airlines24 June 202027 August 202014.5%
Southwest Airlines13 October 202009 November 202018.9%
 
* All Profit data quoted is Total, Gross returns expressed in local currency terms.

Warning: Past performance should not be taken as an indication or guarantee of future performance.
Warning: Past performance is not a reliable guide to future performance. 
Warning: The value of your investment may go down as well as up.
Warning: If you invest in this product you may lose some or all of the money you invest.

 

goodbody-logo-white

youtube-footer    linked-footer

Warning: Nothing presented on this website constitutes investment advice as it does not take into account the investment objectives, knowledge and experience or financial situation of any person. You should not act on it in any way and are advised to obtain professional advice suitable to your own individual circumstances. The value of your investment may go down as well as up. You may lose some or all of the money you invest. Past performance should not be taken as an indication or guarantee of future performance; neither should simulated performance. The value of securities may be subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities.
Goodbody Stockbrokers UC, trading as Goodbody, is regulated by the Central Bank of Ireland. In the UK, Goodbody is also subject to regulation by the Financial Conduct Authority. Goodbody is a member of Euronext Dublin and the London Stock Exchange. Goodbody is a member of the group of companies headed by AIB Group plc.
@2022, Goodbody
youtube-footer     linked-footer     instagram-footer