JetBlue Stock Grounded Despite Upbeat Earnings

The shares have been facing off with the $22 level for three years

Deputy Editor
Apr 27, 2021 at 9:36 AM
facebook twitter linkedin


JetBlue Airways Corporation (NASDAQ:JBLU) is the latest airliner to step into the earnings confessional. The results are encouraging; JetBlue posted a first-quarter loss of $1.48, narrower than the expected first-quarter loss of $1.69. Revenue beat expectations as well, thanks to a rebound in air travel demand. Nevertheless, JBLUE is down 2.9% to trade at $19.92 this morning, despite trading higher in premarket action.

On the charts, JetBlue stock has faced off with a stiff ceiling at $22, and has been since March 2018, with the last attempt stalling out at an annual high of $21.96 on April 6. Over the last three months, JBLU has tacked on 41% with support from the 50-day moving average catching a sharper pullback last week. Longer term, the security has added 158.7% year-over-year. 

Coming into today, analysts were quite optimistic on the stock. In fact, eight of the 10 in coverage call it a "buy" or better, while the remaining three sport "hold" or worse rating. Plus, the 12-month consensus price target of $21.79 is a 5.9% premium to current levels.

For those looking to speculate on the security's next move, options may be the way to go. According to JBLU's Schaeffer's Volatility Index (SVI) of 46%, which stands higher than only 6% of readings from the past 12 months, options traders are pricing in relatively low volatility expectations for Shopify -- a boon for premium buyers.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners