Spirit Airlines Plans to Accept Frontier's $2.7 Billion Bid

Spirit stock is set to snap a five-day win streak

Digital Content Manager
Jun 27, 2022 at 10:18 AM
facebook X logo linkedin

After a drawn-out takeover battle, Spirit Airlines Incorporated (NYSE:SAVE) just announced that it plans on accepting Frontier Group's (ULCC) improved cash-and-stock bid worth $2.7 billion, with a shareholder vote slated to take place on Thursday. While JetBlue's (JBLU) latest offer sits at $3.7 billion, Spirit Airlines doubts that the merger between the two companies would be approved by regulators. At last check. SAVE is down 7.6% at $22.70. 

Spirit Airlines stock spent last week closing its early May bear gap, and finished Friday's session at its highest level since late April. Should today's losses hold, the equity could snap a five-day win streak -- its longest in over a year. Year-to-date SAVE is up 4.4%. 

When we last covered Spirit Airlines stock, the shares were rising after an upgrade from J.P. Morgan Securities. Analysts still remain split on the stock, with five saying "strong buy," and four saying "hold." Meanwhile, short interest is shooting higher, up 20.5% in the last reporting period. Plus, the 10.42 million shares sold short make up a solid 9.6% of the stock's available float. 

Options traders have remained optimistic. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock sports a 10-day call/put volume ratio of 7.89, which sits in the 70th percentile of its annual range. In other words, calls are getting picked up at a quicker-than-usual clip right now. 

What's more, SAVE's Schaeffer's Volatility Index (SVI) of 62% sits in the relatively low 23rd percentile of its 12-month range. This means options traders are pricing in relatively low volatility expectations for SAVE at the moment. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI