Q2 STOCKS TO BUY

Hostile Takeover Bid Sends Spirit Airlines Stock Soaring

Short sellers are hitting the exits in droves

Digital Content Manager
May 16, 2022 at 10:29 AM
facebook X logo linkedin


The shares of Spirit Airlines Incorporated (NYSE:SAVE) are up 12.7% at $19.13 this morning, after JetBlue Airways (JBLU) launched an all-cash, hostile takeover bid for the low-cost airline, following the rejection of its $33 per share buyout proposal. JetBlue is now offering $30 per share to shareholders, though it said it is willing to pay its original offer, pending "necessary diligence."

The security has been extremely volatile of late. SAVE's early April bull gap lost steam at the $28 area, which also rejected its February rally. The shares are now bouncing off a May 12, annual low of $15.94, though the 20-day moving average still lingers above as resistance. Longer term, Spirit Airlines stock has shed 51.4% in the last 12 months.

Short sellers have been hitting the exits in droves. In fact, short interest fell 15.1% in the last reporting period, though the 8.64 million shares sold short still make up 8% of SAVE's available float.  

Options traders are blasting the equity in response to today's news. Just in the first half hour of trading, 7,412 calls and 972 puts have exchanged hands, which is 13 times the volume that is normally seen at this point. Most popular are the May 17.50 call, where positions are currently being opened, and the 25 call in the same monthly series.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter