Options Bulls Double Their Money Off Boeing Stock

This BA call doubled investors' money in the last two months

Deputy Editor
Feb 22, 2023 at 1:28 PM
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Last week, subscribers to our PowerTrend (PowerT) service scored a net profit between 105% and 110% on our recommended Boeing Co (NYSE:BA) February 17, 180-strike call. Below, we'll unpack the reasoning for the bullish stance on the aerospace giant.

We recommended the trade on Thursday, Dec. 8. At that time, BA had pulled back to its 20-day moving average, a trendline that's alternatives between support and resistance in the last 12 months. That trendline was also situated just above the $174 level, which is 1.5 times the stock's 2022 closing low.

BA PM Chart February 222023

Shorts were building their positions as the stock ticked higher, typically seen as a sign of the stock's underlying technical strength. In early December, the shares' 12-month consensus price target was awfully close to its current price levels, which meant price-target hikes were in play.

Boeing stock was also regularly realizing bigger-than-expected moves on the charts over the previous 12 months, per BA's Schaeffer’s Volatility Scorecard (SVS) of 85 out of 100. 

Immediately following our recommendation, Boeing stock took flight on the charts, with a pullback last week contained by that 20-day trendline. No fewer than 13 price-target hikes in the last two months also fueled tailwinds, as well as a slew of new contracts for Boeing airliners.

Not even a lackluster late-January earnings report could slow the equity's momentum. The stock closed on the date of this call recommendation at $180.93 on Dec. 8. We closed half of the position on Jan. 23. The final 50% was closed on Feb. 17, the date of expiration, with BA trading at $211.76, allowing subscribers to double their money in a little over two months.

 

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