Options bulls have not given up hope on BA, though
With 2025 just two weeks away, now is the time for self-reflection. Investors are also reviewing their plays for a better grasp of the broader-market picture, so as 2024 comes comes to a close we will assess the best and worst stocks of the year, starting with Dow Jones Industrial Average (DJIA) members. Barring a last-ditch rally, the cellar dweller on the blue-chip index is Boeing Co (NYSE:BA).
The airplane manufacturer had a rough year, which started with an in-flight emergency during an Alaskan Airlines (ALK) flight that developed into a U.S. Department of Justice (DoJ) criminal investigation. Another in-flight issue during a Southwest Airlines (LUV) flight came just months later, with manufacturing mishaps hurting the company's free cash flow. A C-suite shakeup couldn't save BA, with analysts turning bearish and a workers strike only making matters worse.
Though it's currently eyeing its best month of the year, Boeing stock chalked up seven monthly losses in 2024, with January marking its worst monthly performance since April 2022. Shares are emerging from a Nov. 15, two-year low of $137.03, and are also today pacing for their first close above the 200-day moving average since January, but remain on track for their worst yearly loss since 2020.
Nevertheless, options bulls are not giving up on BA. This is per the security's 50-day call/put volume ratio of 1.91 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 92% of readings from the past year.
It's also worth noting that WBA has consistently outperformed volatility expectations over the last 12 months, as reflected in its Schaeffer’s Volatility Scorecard (SVS) score of 72 out of 100.