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Bulls Look to Fly With JetBlue

By Pete Najarian, co-founder of OptionMonster

NEW YORK -- JetBlue Airways (JBLU) has been flying along with other transports, and the bulls were piling on board Tuesday.

The airline stock was higher Tuesday morning despite the S&P 500 trading lower, and buyers snapped up the October 7 calls. OptionMonster's tracking systems show that several chunks went for 15 cents, including one block of 5,000.

These calls lock in the price where the stock can be purchased, letting investors cheaply position for a rally. They can also produce some nice leverage if the shares continue to gain altitude but will expire worthless if the stock remains below $7 through mid-October.

JetBlue shares ended the session up 1.05% to $6.76 and are not too far from their 52-week highs.

Total option volume in the name was 17 times greater than average. Overall calls outpaced puts by more than 10,000 to just 89, reflecting how much the bulls were in control.

Najarian owns JBLU calls.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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