Boeing Stock Lifted by 737 Ban Update

European regulators say the 737 Max ban could be lifted by November

Deputy Editor
Sep 25, 2020 at 10:26 AM
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Aerospace blue-chip Boeing Co (NYSE: BA) is all over the headlines today. One of the aircraft manufacturer's suppliers, Impresa, is filing for bankruptcy protection as a result of the 737 Max jet crashes in 2019. According to one report, the Max was a key source of revenue for Impresa. Still, BA is up 1.3% at $147.87 at last check, after Europe's safety regulator EASA says it could lift its technical ban of the 737 Max by November.

Earlier this month, Boeing stock nosedived after the U.S. Federal Aviation Administration (FAA) began an investigation regarding the company's 787 Dreamliner. Yesterday's session saw BA breach the $150 level for the first time since May 28. Longer-term, the equity is down 62.2% year-over-year, with pressure emerging at its 50-day moving average.   

Still, calls dominate in Boeing stock's options pits. BA sports a 50-day call/put volume ratio of 2.21 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 95th percentile of its annual range. This suggests a healthier-than-usual appetite for bullish bets of late.

The good news for options traders is that the stock’s Schaeffer’s Volatility Index (SVI) of 58% sits higher than just 18% of all other annual readings, meaning options traders are pricing in relatively low volatility expectations at the moment.


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