Bull & Bear: JetBlue Airways Corporation (JBLU)

Shares of JetBlue Airways Corporation JBLU are higher on the session by 0.70%, trading at $5.75. With the recent volatility in shares of airlines, you have to wonder where JBLU could move next… Bulls: Bulls will note that the stock is basing off of a major historical support level and appears ready to make a jump towards $6.40. Bulls will also note that oil futures have put in a recent decline, which could prove to be a double top if it continues to slide. Bulls will also note that call volume spiked dramatically last Thursday, signaling that traders see the stock moving higher for the time being. A bullish trader could buy the June $6.00 call for $0.25; this is a cheap bet that JetBlue Airways Corporation continues to fly higher. Bears: Bears will note that JetBlue Airways Corporation is trading below the 50-day and 200-day moving averages, both of which are downward-sloping. This will provide a significant amount of overhead resistance to any rise in shares. Bears will also note that oil futures are sitting on 20-day historical support and have the potential to jump from here; this would be negative to shares of JBLU. A bearish trader could buy the June $6.00 put for $0.45 as a proxy to short shares. This gives leverage to the downside, while also providing a defined loss should shares soar. JetBlue Airways Corporation is a passenger airline that operates primarily on point-to-point routes with its fleet of 115 Airbus A320 aircraft and 45 EMBRAER 190 aircraft, such as the youngest and most fuel-efficient fleet of any major United States airline.