Noteworthy Wednesday Option Activity: KSS, LUV, RXST

Southwest Airlines (LUV) and RxSight Inc (RXST) are exhibiting significant options trading activity today, with volumes representing 55.7% and 52.9% of their respective average daily stock trading volumes. LUV saw 60,077 contracts traded, notably in the July 2025 $35.50 call, while RXST registered 3,767 contracts, with high interest in its July 2025 $7.50 call. This elevated options flow suggests increased investor focus and potential directional positioning in both underlying equities.

Analysis

Southwest Airlines (LUV) and RxSight Inc. (RXST) are experiencing a significant surge in options market activity, indicating heightened investor focus and potential directional positioning. LUV's options volume reached 60,077 contracts, equivalent to 55.7% of its average daily share volume, while RXST's volume of 3,767 contracts represented 52.9% of its typical share turnover. The activity is not diffuse; it is notably concentrated in specific long-dated call options. For LUV, a significant 13,842 contracts traded on the July 2025 $35.50 strike call, representing over 23% of the day's total options volume. Similarly, for RXST, the July 2025 $7.50 strike call saw 1,420 contracts traded. This concentration in out-of-the-money, long-dated calls suggests that certain market participants are making leveraged, bullish bets on substantial price appreciation in both stocks over the next year.

Key Decisions for Investors

• Investors should monitor the open interest and subsequent volume in the July 2025 $35.50 calls for LUV and the July 2025 $7.50 calls for RXST to gauge if this bullish sentiment is building or fading.