Warrior Trading Blog

I LUV It When That Happens. 3 Steps to Trading an Alert!

I LUV It When That Happens. 3 Steps To Trading An Alert.


Warrior Swing Traders bank nearly 200% on intraday options alert in our trading chat room with $LUV calls.


Sometimes, when you are sitting around thinking how boring your day is, you find an opportunity that has potential What you don’t know is, that the power of that potential. That is what happened to me today. Sitting at my desk. Today’s opportunity came in the form of a an options sweep alert in LUV (Southwest Airlines).

Sweep Detected:

“08:37:30 AM 5312 LUV Nov16 38.0 Calls $0.80 NBBO=0.70-0.80 11:37:25”


Now, there is nothing out of the ordinary about a large options sweep. As options traders and swing traders, we know that we have to do a bit more digging with this initial information in order to make it work for us. Anyone who has taken our trading courses knows how to do this.


Step 1: The first step is in reviewing the chart and any catalysts. Oh, what do you know, a big gap down for LUV following earnings. That accounts for our volatility and catalyst.

LUV gap down


Step 2: Determine target and risk against the chart (technical analysis). Seeing that big gap between $38 and $40 tells me that this has room to move into that gap. Gap fills are common after over exaggerated moves like those following earnings reports. I sent out the alert to the chat room that I had bought LUV Nov16 $38 calls, the same ones in the options sweep, at 8:40 AM EST. LUV was trading under $37.50 at that time.

LUV price action


“11:40 Jeff : Swing/Day Trade: LUV Nov16 38 Calls at .80 following a large call sweep. Looking for a target between 1.00 and 1.10 short term.”


Step 3: Finally, once a trade begins moving in our favor, we have to be prepared to lock up profits. In the case of my options trades, I ALWAYS target 30-50% ROI for my first sell spot. This time was no different. I noticed the squeeze that began once the LUV conference call began. The idea was to scale out every 30-50%.


12:49 Jeff : All out LUV Nov16 38c 1.65 the rest or +106% in about an hour! niceeeee
12:45 Jeff : sold another 25 LUV contracts 1.30 or + 62.5%. Stop the rest 1.10
12:44 Jeff : Sold another qtr LUV 1.10 or +38%


The only thing that remains is to lock up your profits and find a way to spend the rest of your day, so you don’t give back your profits! What a great trade to finish the month on. The only way to capitalize on trades like today is to not only understand what you are up against, but how to find and capitalize on opportunities when they present themselves.