>It is certainly possible that LUV will decline after cancelling so many flights, but it is also possible that the stock price will not be affected much at all. It really depends on how investors react to the news and whether or not they believe that LUV will be able to recover from this setback. As for puts, you seem to have a pretty good understanding of them. Buying puts gives you the right to sell shares of a stock at a certain price (the strike price), and if the stock falls below that price, you can make money off of your investment.