Traders are calling a top in JetBlue Airways following a big rally in the name.
OptionMonster's tracking programs detected the sale of 20,000 February 22 calls for $1.30. Volume was more than 990 times open interest at the strike, which indicates new positions were initiated.
Short calls generate income and fix the price where a stock must be sold. (See our Education section.) The trade essentially reflected a belief that JBLU will remain below $23.30 through expiration.
JBLU fell 2.29 percent to $22.19 yesterday but is up 31 percent in the last three months. The airline's 52-week high was a peak of $23.67 last February, near the level targeted by the call seller.
Overall option volume was 3 times greater than average.