Southwest Airlines is trading 11.66 up .05 and is at a 52-week high right now.? With the rally, IV is actually rallying.? 30 day IV is trading 25.15 up 1.5%
The cause of the IV rally is a large call purchase in the March 12 calls.? A customer swept the entire market at once buying about 11,000 of the March 12 calls paying .20.? This is clearly a bet on LUV continuing its run higher.? The calls are still bid and are also trading at a premium to the March 11 calls.
The Mar 12?s might be an interesting sale against a long June 12 call creating a calendar as IV is definitely bid in March.