Schaeffer's Top Stock Picks for '25

Airline Stock Dips After Convertible Debt Deal Announcement

JBLU options can be had at a bargain, too

Deputy Editor
Mar 22, 2021 at 9:28 AM
facebook X logo linkedin


The shares of JetBlue Airways Corporation (NASDAQ:JBLU) are suffering in pre-market trading, after the company announced a massive convertible debt deal. Specifically, JetBlue is planning to raise $650 million by selling convertible senior notes, which will mature on April 1, 2026. In response, JBLU is down 3.6% to trade at $20.25 in ahead of the opening bell.

On the charts, JetBlue stock is just five sessions removed from a three-year peak of $21.73, which also sits just above the equity's 2020 highs. Should today's negative price action continue, the 20-day moving average could act as a net to save the security from further losses. Longer term, JBLU is up 176.3% year-over-year. 

In the options pits, calls rule the roost, according to the stock's 50-day call/put volume ratio. In fact, in the past ten weeks, 9.16 calls were picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than all other readings from the past year, suggesting long calls have rarely been more popular. 

Plus, now seems like a good time to weigh in on JBLU's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 48% sits in the extremely low 2nd percentile of its annual range. This suggests the equity sports attractively priced premiums at the moment.

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?