Boeing reported losses in the first quarter that exceeded expectations
The shares of Boeing Co (NYSE: BA) are down 1.5% to $ 238.89 after the Dow member reported its sixth straight quarterly loss. The aircraft maker went down, reporting losses of $ 1.53 per share for the first quarter, compared to estimates of $ 1.16, with revenue slightly above Wall Street projections. This is because the pandemic continues to put pressure on the industry as Boeing continues to delve into responding to two fatal crashes in 2020 involving the company’s 737 Max aircraft.
On the charts, Boeing stock just hit its highest level in a year, hitting $ 278.57 on March 15. While the stock pulled back recently, the 70-day moving average has seen the decline in the $ 230 region. For the past week, the 40-day trendline and the $ 245 level have developed as layers of resistance. In the long term, BA has a lead of 88.4% over the previous year.
The option pits are showing some serious upward movement based on the security’s 50-day call / put volume ratio of 3.18 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). That ratio is in the 99th percentile of its annual range, suggesting that the appetite for long calls was much healthier than usual.
While calls are still more than doubling during today’s trading, options activity has increased on both sides of the aisle. To date, 67,000 calls and 34,000 puts have crossed the band – almost double the intraday amount. The most popular contract is the weekly 4/30 235 strike call, closely followed by the 4/30 235 strike put, which opens positions in both places.
And for those looking to speculate on the next move in Boeing stock, options should be considered. BA’s Schaeffer Volatility Index (SVI) of 37% is in the 4th percentile of all other measured values from the past year, which indicates that options traders are pricing in relatively low volatility expectations. In addition, the Schaeffer Volatility Scorecard (SVS) for the share is 79 out of a possible 100 points. This means BA has exceeded those volatility expectations over the past 12 months – a boon for option buyers.