Boeing Stock Ready To Resume Its Quest For Higher Highs

Short-term options traders are slightly bearish after earnings

Managing Editor
Oct 27, 2017 at 11:31 AM
facebook X logo linkedin


Boeing Co (NYSE:BA) delivered earnings on Wednesday that topped estimates, but the shares pulled back nonetheless, leaving many investors disappointed the blue-chip aerospace stock did not ascend to record highs. Below, we will examine the fallout of Boeing's earnings report, and how options traders are positioning themselves.

Following Wednesday's earnings report, Boeing shares pulled back, but the drop was contained by their 40-day moving average -- a historically bullish trendline. According to Schaeffer's Senior Quantitative Analyst Rocky White, the stock is now trading within one standard deviation of its 40-day moving average after a lengthy stint above this trendline. Following the last eight pullbacks to this moving average, BA was up 2.51%, on average one month later, and was higher 63% of the time.

At last check, Boeing stock is down 0.9% to trade at $256.99. Still, the stock received a price-target hike to $290 at Argus today. BA stock has tacked on almost 80% year-over-year, and touched a record high of $267.21 on Tuesday prior to earnings.  

Analysts, meanwhile, are mixed on the aerospace stock. Of the 17 brokerages covering BA, nine rate the stock a "strong buy," while the other eight rate it a tepid "hold." Should BA bounce off its 40-day moving average again, it could prompt analysts to re-evaluate their pessimistic outlooks.  

Near-term Boeing options traders are put-heavy, as evidenced by the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.97 -- which ranks in the 78th percentile of its annual range. Should Boeing resume its upward trajectory, an unwinding of these likely bearish bets could support additional upside in the equity.

The good news for options traders is that Boeing has made bigger-than-expected moves on the charts over the past year, compared to what was expected from options traders. This is according to BA's Schaeffer's Volatility Scorecard (SVS) of 93. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI