JBLU Bullish after JetBlue - Spirit merger was Blocked

BATS:JBLU   JetBlue Airways Corporation
JetBlue's $3.8 billion buyout of Spirit Airlines was blocked by a judge, citing a threat to competition!

After the news, SAVE went down, while JBLU surged from $4.54 to $5.45! However, today it continued the 6 month downtrend and closed at $4.68.

This might seem like business as usual on Wall Street, except for the presence of some aggressive blocks of calls with strike prices of $6 and $7 on JetBlue's options chain, across multiple expiration dates!

The most commonly chosen expiration date was February 16, following the earnings release. This leads me to believe that we might witness excellent results from the upcoming earnings report.

JBLU was trading at $9.45 just 6 months ago. Its decline was not due to fundamentals but rather on the potential buyout of SAVE. Now that the deal is off the table, I expect JBLU to rise back up.

I'm extremely bullish on JBLU ahead of earnings!


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