Shares of JetBlue $JBLU ( ▲ 0.2% ) surged more than 8% on Tuesday, putting the low-cost airline on track for its biggest daily gain since August and its sixth-best trading day of the past year if momentum holds.
Unusual call option volume fuels the rally
The move is being driven by a sharp spike in bullish options activity. As of 12:14 p.m. ET, more than 53,000 JetBlue call options had traded, nearly four times the stock’s 20-day average volume for a full session. The heavy call buying suggests traders are positioning for further upside in the near term.
Oil relief narrative adds tailwind
JetBlue’s rally builds on strength from Monday, when the stock closed up 4.6%. That move appeared tied to expectations of medium-term oil supply relief, as markets weighed the possibility that Venezuela’s oil reserves could become more developed amid rising US-Venezuela tensions.
Lower or more stable fuel costs are a key lever for airline profitability, making the evolving oil outlook a supportive backdrop for JetBlue and other carriers.