JetBlue Stock Crashes After Results, Potential Merger Block

The U.S. government is hoping to block the merger between JBLU and SAVE

Deputy Editor
Oct 31, 2023 at 3:14 PM
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JetBlue Airways Corp (NASDAQ:JBLU) is sinking to 14-year lows today, after the airline's third-quarter results missed estimates. Plus, reports came that the Biden administration is seeking to block the company's $3.8 billion buyout of Spirit Airlines (SAVE). At last glance, JBLU was down 11.5% at $3.71, and carrying a 42.6% year-to-date deficit. 

Options traders are swarming JetBlue stock in response. So far, 164,000 calls and 100,000 puts have been exchanged, which is already 10 times the average daily options volume. The January 2026 2-strike put is the most popular, followed by the December 4 call, with new positions being opened at both. 

Options traders have been much more bullish than usual in the last 10 weeks, perhaps in an attempt to buy the dip, amid the stock's recent underperformance. This is per JBLU's 50-day call/put volume ratio of 6.40 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 96% of readings from the past year. 

Analysts have yet to chime in with any bear notes, as the majority are already pessimistic towards the stock. Of the nine analysts in coverage, only one carries a "strong buy" rating, with eight a "hold" or worse. 


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