Buzz Stocks: Apple Inc., JetBlue Airways Corporation, and Vivint Solar Inc

Today's stocks to watch include Apple Inc. (AAPL), JetBlue Airways Corporation (JBLU), and Vivint Solar Inc (VSLR)

Mar 8, 2016 at 9:27 AM

U.S. stocks are set to take a breather, with futures pointed lower on downbeat Chinese trade data. Among equities in focus are Mac maker Apple Inc. (NASDAQ:AAPL), transportation issue JetBlue Airways Corporation (NASDAQ:JBLU), and alternative energy stock Vivint Solar Inc (NYSE:VSLR).

The U.S. Justice Department has appealed a court ruling that protects AAPL from unlocking an iPhone in a New York drug case, resubmitting its case to a higher judge. In its filing, the Justice Department wrote, "Apple may perform the passcode-bypass in its own lab, using its own technicians, just as it always has, without revealing to the government how it did so. Therefore, granting the application will not affect the technological security of any Apple iPhone nor hand the government a 'master key.'"

The news has Apple Inc. 0.7% lower in pre-market trading, and poised to test the round-number $100 level the stock recently reclaimed, closing Monday at $101.87. Option traders, meanwhile, have taken a decidedly bearish approach toward the shares in recent weeks. Those purchasing AAPL's near-term options are getting a relative deal, too. The stock's Schaeffer's Volatility Index (SVI) of 22% sits below 86% of all comparable readings taken in the past year.

JBLU is running into turbulence ahead of the bell, after the airline forecast a 7%-8% drop in its first-quarter revenue per available seat mile (RASM), and estimated its RASM for February decreased up to 10.5%. After settling yesterday at $21.90, the stock finds itself nearly 6% lower in electronic trading -- setting it up for another potential test of the $20 area. On the options front, traders have been placing bearish bets over bullish at an extreme rate in recent weeks. JetBlue Airways Corporation's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 2.82 sits at the top of its annual range, with nearly three puts bought to open for every call.

VSLR is bracing for a nearly 5% drop out of the gate, after the company terminated its $2.2 billion cash-and-stock merger with Sunedison Inc (NYSE:SUNE). Sharp losses are nothing new for Vivint Solar Inc, which hit a record low of $4.51 last week and settled yesterday at $5.21, down 45.5% year-to-date. Not surprisingly, short sellers have been upping the bearish ante. Nearly 30% of VSLR's float is sold short, and at the stock's average daily volumes, it would take over 13 sessions for these bears to cover their bets.

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