EARN25

Face Covering Mandate Pushes JBLU Higher

The security still suffers a roughly 56% year-to-date deficit

Digital Content Manager
Apr 28, 2020 at 9:34 AM
facebook X logo linkedin


Members of the airline sector have had a tough time digging themselves out of their mid-March trough, and JetBlue Airways Corporation (NASDAQ:JBLU) is no exception. The stock has been trading sideways for the most part, with its early April surge swiftly cut down by the $12 region, and even more pressure emerging at the 30-day moving average.

Today, however, JBLU is trying to change its luck, up 3.1% at $8.37, after becoming the first major U.S. airline to require face coverings for its customers during travel. The mandate is, of course, in an effort curb the spread of COVID-19, and will become effective on May 4. 

Cowen and Company responded to the order by cutting its price target to $9 from $10. Coming into today, the consensus 12-month price target of $12.50 sat at a 53.9% premium to last night's close. On the other hand, eight of the 12 analysts covering JBLU consider it a "hold," while just three say "strong buy" -- not surprising considering the stock's 56% year-to-date deficit.

While calls are still outnumbering puts overall, the appetite for these bearish bets is heavier than usual. This is per JBLU's 50-day put/call volume ratio of 0.76 at the International Securities Exchange (ISE), Cboe Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 89th percentile of its annual range. 

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!