Schaeffer's Trading Floor Blog

Stocks to Watch Friday: JetBlue Airways Corporation, Walgreen Company, and SINA Corp

Analyzing JBLU, WAG, and SINA ahead of tomorrow's trading

by 5/29/2014 4:51 PM
Stocks quoted in this article:

Momentum names that made notable moves on Thursday and could continue to do so into Friday's session include passenger airline JetBlue Airways Corporation (NASDAQ:JBLU), drugstore chain Walgreen Company (NYSE:WAG), and Chinese Internet concern SINA Corp (NASDAQ:SINA). Here is a quick look at these stocks ahead of tomorrow's opening bell.

JetBlue Airways Corporation (NASDAQ:JBLU)

JetBlue flew to a six-year high of $9.68 today -- after the airline filed an application to launch a bilateral codeshare operation with Singapore Airlines Ltd. this morning -- and by the end of the session, the equity maintained a 1.1% gain to close at $9.55. In the options pits, speculators responded by picking up calls at a rate of more than five times the daily norm. In fact, through the course of the session, roughly 14,000 calls were exchanged, versus just 371 puts. Today's preference for calls over puts echoes a longer-term trend on JBLU. The stock sports a 20-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 59.23, with calls bought to open outnumbering puts by a more than 59-to-1 margin during the past month. It is possible some of this call activity is due to short sellers hedging against more upside, as 17.8% of JBLU's stock is currently sold short.

Walgreen Company (NYSE:WAG)

Walgreen closed 1.9% higher today at $71.11, but not before maxing out at a record peak of $71.47 earlier in the session. Meanwhile, put volume jumped to more than double the average daily amount, with the three most active strikes of the day being puts that expire within the next seven weeks. Stepping back, this heavy put activity is actually atypical in WAG's options pits. Before today, the equity boasted a 20-day ISE/CBOE/PHLX call/put volume ratio of 3.70, meaning almost four calls have been bought to open for every put during the past month. Looking ahead, WAG will unveil its monthly sales report next Wednesday, June 4.


SINA marched 3.5% higher today to close at $46.64, despite a lack of notable news drivers. What's more, calls were the contracts of choice in SINA's options pits today, and by the end of the session, these contracts more than doubled puts. Seven of the 10 most active strikes of the day were short-term calls, which is reflective of the overall option trend on SINA. Right now, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.28 ranks the lowest of all comparable readings from the past year, indicating call open interest (relative to put open interest) is at an annual-high level among options expiring within the next three months. Not to mention, the stock's 10-day ISE/CBOE/PHLX call/put volume ratio of 5.08 ranks in the top 18% of its 12-month range, demonstrating a faster-than-usual rate of call buying, relative to put buying, during the past two weeks.

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