Analyst Downgrades JetBlue Stock, Options Bears Respond

JBLU is down 33.4% year-over-year

Digital Content Manager
Apr 22, 2022 at 10:51 AM
facebook twitter linkedin

The shares of JetBlue Airways Corporation (NASDAQ:JBLU) are down 2.6% to trade at $13.17 at last check, after Deutsche Bank downgraded the equity to "hold" from "buy," and cut its price-target to $16 from $21. The firm noted it expects the low-cost airline to be stagnant as the industry recovers from the Covid-19 pandemic.

The brokerage bunch was mostly optimistic towards JetBlue Airways stock coming into today, with six of the 10 analysts in question rating it a "buy" or better. What's more, the 12-month consensus target price of $15.20 is a 14.9% premium to the security's current levels. 

The equity had been charging higher prior to today's bear note, though its rally fell short at the $14.20 mark yesterday. The 60-day moving average has been keeping a tight lid on shares this month, though, and longer term JBLU remains down 33.4% year-over-year.  

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), JBLU's 50-day put/call volume ratio of 0.33 sits higher than 97% of readings from the last 12 months. This indicates that though calls are still outnumbering long puts on an overall basis, the latter are getting picked up at a much quicker-than-usual pace. 

Today's options pits are brimming with bearish bets. So far, 25,000 puts have crossed the tape, which is nine times the volume that is typically seen at this point, as opposed to just 3,479 calls. Most popular is the May 12 put, followed by the 13 put in the same monthly series, with positions being opened at the latter.


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