Boeing Stock Dips After Mult-Billion Dollar Sale Falls Apart

BA just pulled back near its year-to-date breakeven level

Deputy Editor
Sep 7, 2021 at 10:12 AM
facebook twitter linkedin

The shares of Boeing Co (NYSE:BA) are down 1.8% at $214.26 at last check, after Ryanair, a major customer of the blue-chip plane manufacturer, ended talks for a multi-billion dollar order. Digging deeper, Ryanair walked away from a purchase of Boeing's 737 MAX 10 jets, which would have been worth tens of billion of dollars, after a dispute arose over the price of the deal. 

Today's small dip is still enough to bring Boeing stock within a hairs breadth of its year-to-date breakeven level, as the equity was up just 1.9% on the year coming into today. The 100-day moving average has guided the shares lower since a small mid-August bear gap, while a short term floor at the $216 level was just breeched. Meanwhile, longer term, BA is up 29.3% year-over-year.

An unwinding of bearish sentiment in the options pits could put some wind at Boeing stock's back. The security's Schaeffer's put/call open interest ratio (SOIR) stands higher than 98% of other readings from the past year, suggesting short-term options traders have rarely been more put-biased. 

Analysts, meanwhile, have been overwhelmingly bullish. Of the 16 in coverage, 10 call BA a "strong buy," while six say "hold." Plus, the 12-month consensus price target of $264.17 is a 21.1% premium to last night's close.



Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners