Long-term trade on Southwest Airlines

In March 2020 we sold Puts on Southwest that expired worthless in April for a small premium that we collected, and we see a fantastic long-term trade on the airline now that should pay off handsomely.  If we look far out to January 2022 the option premiums are very high since the stock is currently trading around $28.

We are selling the Jan 2022 $27.50 Puts on LUV for $7.80. That's a good amount of premium we're collecting today, and the stock would have to drop below $20 for us to be at risk of being Put the stock and having to purchase it at a net cost of $19.70 which we would do.  The likely scenario is that we will buy back the Puts for almost nothing before expiration if we want to recoup the margin requirement or we can let them expire and keep everything we collect today.