Schaeffer's Midday Options Update Features JetBlue Airways.CINCINNATI -- Today's Schaeffer's Midday Options Update features JetBlue Airways For the Jet Blue database used in Exchange Server and Active Directory, see Extensible Storage Engine. JetBlue Airways is a major American low-cost airline owned by JetBlue Airways Corporation (NASDAQ: JBLU). (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :JBLU JBLU JetBlue Airways Corporation (stock symbol) ). The Midday Options Update contains a brief commentary on the day's most notable activity and a table listing the most-active calls and puts for the day. The Midday Options Update is published every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. Take advantage of the timely Schaeffer commentaries by signing up for their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day and get entered to win an iPod Nano A flash-based digital music player from Apple, introduced in 2005. Like larger iPod models, the nano has a color screen. Although the nano name suggests ultra-small "nanotechnology," the iPod shuffle is actually smaller. See iPod. . http://www.schaeffersresearch.com/redirect.aspx?CODE=PRMOU13M&PAGE=1 . Options Update: When You're a JetBlue You're a JetBlue All the Way The major market indices enjoy respectable gains in early afternoon trading, led by the Nasdaq Composite The Nasdaq Composite is a stock market index of all of the common stocks and similar securities (e.g. ADRs, tracking stocks, limited partnership interests) listed on the NASDAQ stock market, meaning that it has over 3,000 components. It is highly followed in the U.S. . The technology-rich index has toppled the 2,400 level, reached a new five-year high, and is sitting with gains of more than half a percent. The economic slate was empty today, and earnings news hasn't been especially robust today, leaving investors to focus on corporate news and catch their collective breath ahead of the news onslaught planned for later this week. Also in focus today is the Federal Reserve, as Dallas branch President Richard Fisher
Most-Active Options Update At 1:57 p.m. Eastern Time, the Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. (DJIA DJIA See Dow Jones Industrial Averager (DJIA). - 12,144.3) has added 0.29 percent, while the S&P 500 Index (SPX (Sequenced Packet EXchange) The transport layer protocol in the NetWare operating system. Similar to the TCP layer in TCP/IP, it ensures that the entire message arrives intact. SPX uses NetWare's IPX as its delivery mechanism. - 1,385.40) is up 0.33 percent. The Nasdaq Composite (COMP - 2,402.6) has rallied 0.54 percent. At 1:58 p.m. Eastern Time, 3,269,110 calls have changed hands compared to 2,189,117 puts, equaling a single-day put/call volume ratio of 0.66. The CBOE's equity put/call volume ratio stands at 0.66, while the ISE's ratio weighs in at 0.67. JetBlue Airways JetBlue Airways (NASDAQ:JBLU) lifted passengers into the wild blue yonder yon·der adv. In or at that indicated place: the house over yonder. adj. Being at an indicated distance, usually within sight: "Yonder hills," he said, pointing. with a combination of savings and style. The discount carrier is known for its in-flight perks, including leather seats and personal video devices. From its hubs at New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of City's JFK Airport and Long Beach Airport outside of Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , KBLU currently serves 45 U.S. and Caribbean destinations. Late last month, the company reported a 10.5-percent rise in third-quarter traffic and a 39-percent jump in revenue for the reporting period. In early-afternoon activity, interest has been focused on the stock's in-the-money March 15 put (JGQ OC). More than 15,000 contracts have swapped hands at this strike; coming into trading today, just under 26,000 contracts were in place on this put option, making it the site of heaviest put open interest across all open series from the front-month through January 2009. Shortly before noon, two blocks crossed the tape on this option. One block, 10,500 contracts in size, traded at the ask price of 2.10, while another block of 2,000 contracts traded between the bid and the ask price at 2.05 per contract. About an hour later, another block of 2,500 contracts changed hands. If these were initiated by the buyer, it suggests that they expect JBLU to fall from its current levels between now and mid-March. Tomorrow we'll look at the open-interest translations at this strike, together with implied-volatility changes, to see if today's volume was in fact new positions. During the past several weeks, JBLU shares have taken off with a G-force that would impress most Blue Angels. Since early October, the stock has appreciated more than 50 percent, easily overtaking potential double-top resistance near the 13 level and heavy call open interest at the front-month 12.50 strike. JBLU's 10-day moving average has played an instrumental role in supporting this rally. Today, airlines have soared higher amid broader-market strength and a pullback in crude prices. JBLU has tacked on more than four percent. The shares are now on pace to close a second consecutive month above their 10-month and 20-month moving averages. The last time JBLU managed two monthly closes in a row atop these trendlines was in late 2003. Investors and analysts currently appear reluctant to buy into JBLU's strength, meaning there is still ample money remaining on the sidelines On the sidelines An investor who decides not to invest due to market uncertainty. on the sidelines Of or relating to investors who, having assessed the market, have decided to avoid committing their funds. to help steer JBLU even higher. Short interest, for example, accounts for nearly one third of the company's available float. This equal a short-interest ratio short-interest ratio A ratio that is used for market analysis and is calculated by dividing short interest by average daily volume. Technicians use the short-interest ratio as a tool to determine market direction. of 10.53. In other words Adv. 1. in other words - otherwise stated; "in other words, we are broke" put differently , it would take more than two weeks' worth of trading sessions (at the stock's average daily volume) to eradicate all of these bearish Bearish Words used to describe investor attitude. A bearish investor believes that a particular asset or the market as a whole will decline in value. bearish bets. This provides a robust layer of short-covering support for the shares. JBLU also stands to benefit from an upgrade or two, as Wall Street has not yet bought into the stock's rally. Currently, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Zacks, there are two "buy" ratings on JBLU along with six "holds" and a lone "strong sell." If the airline sector overall and JBLU in particular continue to mount a recovery, some of these skeptics may change their tune, bringing positive attention to the shares. Given the energy landscape, airline stocks are not for the faint of heart, but JBLU could be an attractive shade for an aggressive trading palette. Click here to see the following charts: Daily Chart of JBLU Since June 2006 With 10-day moving average, Monthly Chart of JBLU Since September 2003 With 10-month and 20-month moving averages: http://www.schaeffersresearch.com/wire?ID=17729 . The best way to take advantage of the timely Schaeffer commentaries is to sign up to receive their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day and get entered to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PRMOU13M&PAGE=1 . About Schaeffer's Investment Research (www.SchaeffersResearch.com) Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com , is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method . |
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