Southwest Airlines (LUV) Protective Put Calculator
Calculator · free · no signup · LUVPrice a protective put, zero-cost collar, or put spread on Southwest Airlines. Annual cost, max loss, upside cap, tax treatment, auto-filled from current LUV option chain.
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You priced one hedge. The beta picks the right hedge structure given your full equity stack and tax situation.
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About Southwest Airlines
Southwest Airlines (LUV) is a public Airline and Travel company, incorporated in Texas and headquartered in Dallas, TX.
Equity grants at Southwest Airlines typically include restricted stock units (RSUs).
Herb Kelleher and Rollin King founded the airline in 1967, reportedly sketching the route triangle on a napkin, and it began flying in 1971 after litigation from incumbents. The model was deliberately simple: one aircraft type, no assigned seats, point-to-point routes, quick turnarounds, and no bag fees. It was profitable for decades until the pandemic. A December 2022 scheduling system collapse stranded passengers for days and prompted regulatory penalties, and activist pressure in 2024 pushed the airline toward assigned seating and premium rows. Headquarters are in Dallas.
Sources: southwest.com · en.wikipedia.org
Equity comp at Southwest Airlines
- RSUs use single-trigger vesting: shares become yours as each portion vests on schedule, and the value is taxed as ordinary income at that point. No IPO or acquisition is required.
Researched 2026-08-17.
OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Southwest Airlines.
A protective put caps your downside on the LUV position at a chosen floor; a zero-cost collar pays for that floor by capping the upside. This calculator prices both structures off the current LUV option chain, with annual cost, max loss, and tax-treatment notes.
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Southwest Airlines equity questions
- How much does it cost to hedge LUV stock?
- The cost of a protective put depends on how far below the current price you set the floor, how long the protection lasts, and LUV's option-implied volatility. A zero-cost collar lowers that cost by selling away some upside. The calculator above prices both structures off the current LUV option chain and shows the annual cost, maximum loss, and tax treatment.
- Does Southwest Airlines grant ISOs, NSOs, or RSUs?
- Equity compensation at Southwest Airlines typically takes the form of restricted stock units (RSUs). Restricted stock units are taxed as ordinary income when they vest.
- Do Southwest Airlines RSUs use double-trigger vesting?
- No. Southwest Airlines restricted stock units (RSUs) use single-trigger vesting: each tranche becomes yours as it vests on schedule, taxed as ordinary income at that point, with no liquidity event required.
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