JetBlue Stock Sees Options Surge Amid Bidding War

The $16 level has provided a long-term ceiling on the charts

Deputy Editor

Apr 11, 2022 at 2:26 PM

JetBlue Airways Corp (NASDAQ:JBLU) has been in the spotlight lately, after both JetBlue and Frontier Group Holdings (ULCC) made bids to buy budget airliner Spirit Airlines (SAVE). Separately, BofA Global Research slashed JBLU's price target to $15 from $17 today, citing higher fuel costs.

Amid the recent attention, JBLU appeared on Schaeffer's Senior Quantitative Analyst Rocky White's list of names on the S&P MidCap 400 Index (SP400) that have attracted the most weekly options volume in the last two weeks. During this time, 248,761 calls and 157,709 puts were exchanged -- three times the usual options volume. The May 15-strike call was the most popular, followed by the April 12 put.

MAO Chart April11

JetBlue stock has had quite a volatile time on the charts lately, with pressure at the $16 level since September, which now coincides with the stock's 320-day moving average. Today, the stock is up 1.3% to trade at $12.05, though not too far from its recent March 8 17-month low of $11.37.

JBLU April11

The security could be due for a short-term bounce, too. JBLU's 14-day relative strength index (RSI) of 25.1 sits firmly in "oversold" territory.

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