Boeing Stock Hits Turbulence After Company Reports Q1 Losses

Boeing has been doing damage control following two fatal crashes in 2020

Assistant Editor
Apr 28, 2021 at 10:26 AM
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The shares of Boeing Co (NYSE:BA) are down 1.5% at $238.89, after the Dow member reported its sixth-consecutive quarterly loss. Digging deeper, the aircraft manufacturer reported first-quarter losses of $1.53 per share, compared to estimates of $1.16, with revenue coming in slightly above Wall Street's forecasts. This comes as the pandemic continues to put pressure on the industry, while Boeing continues to deal with the backlash of two fatal 2020 crashes involving the company's 737 Max aircraft.

On the charts, Boeing stock just scored its highest level in a year, hitting $278.57 on March 15. While the equity has pulled back recently, the 70-day moving average caught the dip at the $230 region. Meanwhile, the 40-day trendline and $245 level have moved in as layers of resistance over the last week. Longer-term, BA sports an 88.4% year-over-year lead.

The options pits are flashing serious bullish activity, per the security's 50-day call/put volume ratio of 3.18 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands in the 99th percentile of its annual range, which suggests the appetite for long calls has been much healthier than usual.

While calls are still more than doubling puts during today's trading, option activity has picked up on both sides of the aisle. So far, 67,000 calls and 34,000 puts have crossed the tape -- nearly double the intraday amount. The most popular contract is the weekly 4/30 235-strike call, followed closely by the 4/30 235-strike put, with positions being opened at both. 

And for those looking to speculate on Boeing stock's next move may want to consider options. BA's Schaeffer's Volatility Index (SVI) of 37% sits in the 4th percentile of all other readings from the past year, suggesting option traders are pricing in relatively low volatility expectations. What's more, the equity's Schaeffer's Volatility Scorecard (SVS) sits at 79 out of a possible 100. This  means BA has managed to exceed these volatility expectations during the past 12 months -- a boon for option buyers. 

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