Bull Note Lifts Boeing Stock Once Again

BA snagged a record high last Wednesday

by Patrick Martin

Published on Feb 11, 2019 at 9:12 AM
Updated on Jun 24, 2020 at 10:16 AM

The shares of Boeing Co (NYSE:BA) are up 1% in electronic trading, ahead of a critical week of trade talks between the U.S. and China. Also fueling the fire is a bull note from J.P. Morgan Securities, which upped its price target on the aerospace giant to $450 from $425, an 11% premium to Friday's closing perch of $404.91 and standing in fresh record-high territory. 

Last Wednesday, Boeing stock tagged an all-time high of $413.88. Today's price action has BA knocking on that door once more, and adding to its 26% year-to-date gain. Since the start of the new year, the shares have been guided higher by their ascending 10-day moving average, and have posted only one weekly loss in 2019 thus far. The equity, historically one of the best to own during a government shutdown, could stay in focus should Friday's deadline pass without a funding deal.

There could even be pessimism unwound in the options pits. The security's Schaeffer's put/call open interest ratio (SOIR) of 1.47 sits in the 100th percentile of its annual range. This suggests short-term options players have rarely been more put-heavy in the past year. 

It could be a good time to speculate on BA with options. The stock's Schaeffer's Volatility Index (SVI) of 25% ranks in the 24th annual percentile, suggesting short-term options are relatively cheap at the moment, from a volatility standpoint.


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