Options Traders Think Boeing May Be Ready For Liftoff

Boeing Co BA has been a frustrating stock for traders and investors with any good news seemingly marred by bad news.

Boeing’s stock is trading down 32% from pre-pandemic levels despite a ramp in the vaccine rollout, which has allowed travelers to return to the skies.

Some options traders think Boeing’s stock is set to liftoff.

The Bullish Boeing Option Trades: Below is a look at the notable option alerts, courtesy of Benzinga Pro:

• At 9:45 a.m., Wednesday a trader executed a call sweep, above the ask, of 219 Boeing options with a $235 strike price expiring on April 23. The trade represented a $64,386 bullish bet for which the trader paid $2.94 per option contract.
• At 9:50 a.m., a trader executed a call sweep, near the ask, of 200 Boeing options with a $250 strike price expiring on June 18. The trade represented a $165,000 bullish bet for which the trader paid $8.25 per option contract.
• At 10:09 a.m., a trader executed a call sweep, near the ask, of 235 Boeing options with a $240 strike price expiring on April 23. The trade represented a $37,130 bullish bet for which the trader paid $1.58 per option contract.
• At 1:34 p.m., a trader executed a call sweep, above the ask, of 498 Boeing options with a $240 strike price expiring on April 23. The trade represented a $38,346 bullish bet for which the trader paid 77 cents per option contract.

Together traders are betting over $304,862 the share price of Boeing is going higher.

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

BA Price Action: Shares of Boeing closed up 0.79% to $235.92.

Photo credit: pjs2005 from Hampshire