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Mike Khouw said on CNBC's Options Action that he noticed unusual bullish activity in JetBlue Airways Corporation (NASDAQ: JBLU). He explained that, on Monday, the call options trading volume was two times higher than the average, and on Tuesday, it was three times above the average volume.

The November 11 call option was the most active and the traders paid $0.63 premium for this strike. The break even for the trade is at $11.63. There are two important events before the expiration. JetBlue Airways is due to report earnings on October 29 and it will have the analyst day on November 19.

Khouw added that it is interesting that JetBlue Airways traded higher in the month leading up to earnings every quarter in the last two years and it traded lower the day after the earnings.

Posted-In: CNBC Mike KhouwOptions Markets Media

 

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