LUV - ULCC Pairs Trade

+1.66%

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2 positions on this trade
2 long · 0 short
2 active positions
Nick Powell: LUV - ULCC — “Frontier Airlines (ULCC) involved in fatal runway incident in Denver; pedestrian killed during takeoff, NTSB investigation launched. Event creates acute negative sentiment for Frontier: operational/safety scrutiny, brand damage, potential regulatory/insurance impacts. Southwest Airlines (LUV) unaffected by Frontier-specific incident and likely benefits from relative competitive positioning and potential market share recovery. This is a single-operator incident (pedestrian fence breach), not a systemic airline safety issue, creating an asymmetric opportunity between directly comparable ULCC peers. Pairs trade captures Frontier's near-term repricing (investigation spotlight, operational concerns) vs. Southwest's relative resilience as competitive beneficiary. News-driven edge highest in first week; NTSB investigation timeline extends beyond 1 week, but immediate market repricing and sentiment peak decay within 5-7 days as initial headlines fade and market awaits formal findings.
Nick Powell: LUV - ULCC — “Frontier Airlines (ULCC) runway fatality in Denver creates acute negative sentiment and NTSB investigation spotlight. Brand damage, operational/safety scrutiny, and regulatory uncertainty pressure near-term performance. Southwest Airlines (LUV) unaffected as direct competitor and benefits from relative positioning during Frontier's reputation hit. Pairs trade: long LUV (beneficiary), short ULCC (incident victim). Asymmetric setup exploiting single-operator incident sentiment peak decay within first week.

Entry: May 11, 2026, 8:00 AM · LUV @ $40.75 / ULCC @ $5.19
Today: May 15, 2026, 8:00 AM · LUV @ $38.88 / ULCC @ $4.78
Prices delayed ~15 min

DateLUVULCCNet
May 11, 8:00 AM$40.75+0.00%$5.19+0.00%+0.00%
May 11, 10:00 AM$40.99+0.59%$5.10+1.73%+1.16%
May 11, 11:00 AM$40.93+0.44%$5.16+0.58%+0.51%
May 11, 12:00 PM$40.90+0.37%$5.12+1.28%+0.82%
May 11, 1:00 PM$40.73-0.05%$5.13+1.16%+0.55%
May 11, 1:30 PM$40.32-1.06%$5.13+1.25%+0.10%
May 11, 2:30 PM$40.02-1.79%$5.04+2.91%+0.56%
May 11, 3:30 PM$40.17-1.42%$5.09+1.92%+0.25%
May 11, 4:30 PM$40.07-1.67%$5.11+1.45%-0.11%
May 11, 5:30 PM$39.98-1.89%$5.09+1.93%+0.02%
May 11, 6:30 PM$40.08-1.64%$5.05+2.60%+0.48%
May 11, 7:30 PM$40.01-1.82%$5.03+3.08%+0.63%
May 11, 8:00 PM$40.12-1.55%$5.09+1.93%+0.19%
May 11, 9:00 PM$40.00-1.84%$5.00+3.66%+0.91%
May 11, 10:00 PM$40.01-1.82%$5.08+2.12%+0.15%
May 11, 11:00 PM$40.02-1.80%$5.01+3.47%+0.84%
May 12, 9:00 AM$39.26-3.66%$4.88+6.05%+1.20%
May 12, 11:00 AM$39.76-2.43%$4.93+5.01%+1.29%
May 12, 12:00 PM$39.78-2.38%$4.95+4.62%+1.12%
May 12, 1:00 PM$39.67-2.65%$4.92+5.20%+1.28%
May 12, 1:30 PM$39.17-3.87%$4.68+9.73%+2.93%
May 12, 2:30 PM$38.90-4.53%$4.62+10.98%+3.23%
May 12, 3:30 PM$39.09-4.07%$4.63+10.79%+3.36%
May 12, 4:30 PM$39.07-4.12%$4.63+10.79%+3.33%
May 12, 5:30 PM$39.15-3.93%$4.67+10.02%+3.05%
May 12, 6:30 PM$39.41-3.29%$4.70+9.54%+3.12%
May 12, 7:30 PM$39.48-3.12%$4.72+9.15%+3.02%
May 12, 8:00 PM$39.47-3.14%$4.70+9.44%+3.15%
May 12, 9:00 PM$39.36-3.41%$4.70+9.44%+3.02%
May 12, 10:00 PM$39.49-3.09%$4.70+9.44%+3.17%
May 12, 11:00 PM$39.59-2.85%$4.70+9.43%+3.29%
May 13, 11:00 AM$39.42-3.26%$4.77+8.09%+2.41%
May 13, 12:00 PM$39.23-3.73%$4.62+10.98%+3.63%
May 13, 1:00 PM$39.10-4.05%$4.64+10.57%+3.26%
May 13, 1:30 PM$39.65-2.70%$4.83+6.90%+2.10%
May 13, 2:30 PM$39.26-3.66%$4.76+8.19%+2.27%
May 13, 3:30 PM$39.40-3.31%$4.71+9.25%+2.97%
May 13, 4:30 PM$39.50-3.07%$4.70+9.34%+3.14%
May 13, 5:30 PM$39.36-3.41%$4.67+10.00%+3.29%
May 13, 6:30 PM$39.53-3.01%$4.72+8.96%+2.98%
May 13, 7:30 PM$39.41-3.29%$4.72+9.06%+2.88%
May 13, 8:00 PM$39.60-2.81%$4.75+8.48%+2.83%
May 13, 9:00 PM$39.48-3.12%$4.75+8.48%+2.68%
May 13, 10:00 PM$39.50-3.07%$4.73+8.85%+2.89%
May 13, 11:00 PM$39.45-3.19%$4.75+8.48%+2.64%
May 14, 11:00 AM$39.57-2.90%$4.75+8.48%+2.79%
May 14, 12:00 PM$39.72-2.53%$4.72+9.11%+3.29%
May 14, 1:00 PM$39.72-2.53%$4.80+7.51%+2.49%
May 14, 1:30 PM$39.43-3.24%$4.76+8.19%+2.47%
May 14, 2:30 PM$39.43-3.24%$4.77+8.09%+2.43%
May 14, 3:30 PM$39.74-2.48%$4.88+5.97%+1.75%
May 14, 4:30 PM$39.62-2.77%$4.84+6.65%+1.94%
May 14, 5:30 PM$39.40-3.30%$4.86+6.26%+1.48%
May 14, 6:30 PM$39.28-3.61%$4.83+6.94%+1.66%
May 14, 7:30 PM$39.32-3.51%$4.84+6.65%+1.57%
May 14, 8:00 PM$39.32-3.51%$4.82+7.19%+1.84%
May 14, 9:00 PM$39.40-3.31%$4.77+8.09%+2.39%
May 14, 10:00 PM$39.29-3.58%$4.86+6.36%+1.39%
May 14, 11:00 PM$39.35-3.42%$4.84+6.74%+1.66%
May 15, 8:00 AM$38.88-4.59%$4.78+7.90%+1.66%