Boeing (BA) Offering Possible 56.25% Return Over the Next 9 Calendar Days

Boeing's most recent trend suggests a bearish bias. One trading opportunity on Boeing is a Bear Call Spread using a strike $380.00 short call and a strike $385.00 long call offers a potential 56.25% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $380.00 by expiration. The full premium credit of $1.80 would be kept by the premium seller. The risk of $3.20 would be incurred if the stock rose above the $385.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Boeing is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Boeing is bearish.

The RSI indicator is at 42.36 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Boeing

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Southwest pilots’ union sues Boeing, claims 737 Max unsafe
Mon, 07 Oct 2019 23:15:00 +0000
The Southwest Airlines Pilots Association said in the lawsuit filed Monday that Boeing rushed the plane into service and misled pilots by saying it was little different than previous versions of the 737.

UPDATE 1-Airbus sold 41 jets in September, targets record 4th-quarter deliveries
Mon, 07 Oct 2019 21:52:59 +0000
Airbus sold 41 jets in September and processed cancellations for nine jets including five originally sold to Norwegian Air, leaving the European firm ahead of Boeing Co in a relatively slow year for an industry distracted by safety and trade headlines. The European planemaker said it had won a total of 303 orders in the first nine months of the year, or 127 net new orders after cancellations. Boeing registered sales of 145 aircraft up to end-August, the latest period for which data is available, or a net total of 55 after ordinary cancellations and a negative total of 85 after adjustments to historic orders deemed unlikely to materialise.

Boeing Sued by Southwest Pilots on ‘Rush’ to Sell Unsafe Max
Mon, 07 Oct 2019 21:51:58 +0000
(Bloomberg) — The union for Southwest Airlines Co. pilots sued Boeing Co., saying the manufacturer rushed output of the 737 Max jet to stay competitive, withholding key information about a feature that contributed to two fatal crashes within five months.“Boeing made a calculated decision to rush a re-engined aircraft to market to secure its single-aisle market share and prioritize its bottom line,” said the Southwest Airlines Pilots Association suit. The union said it’s seeking at least $115 million for damages sustained through the end of this year, primarily for lost pay and legal expenses.“Boeing abandoned sound design and engineering practices, withheld safety critical information from regulators and deliberately misled its customers, pilots and the public about the true scope of design changes,” the suit said.The lawsuit and public criticism from Southwest’s pilots undermine Boeing’s effort to rebuild confidence in its best-selling airplane after months of bruising publicity. The planemaker has invited pilots from Max operators to fly the updated software as part of outreach to flight crews.Southwest is the largest operator of the Max, which has been grounded worldwide since March. Parking its 34 Max planes and failure to get new ones on order has cut at least $225 million from the airline’s operating income and caused tens of thousands of flight cancellations. The jet has been pulled from Southwest’s schedule through Jan. 5.“We believe this lawsuit is meritless and will vigorously defend against it,” Boeing said by email. “We will continue to work with Southwest Airlines and its pilots on efforts to safely return the Max to service.” Its shares were little changed after the close of regular trading.Southwest reiterated that it plans to use profit-sharing to provide employees part of any compensation received in a settlement with the planemaker. It didn’t comment on the substance of the union claims.The Max crashes of Lion Air and Ethiopian Airlines flights have triggered probes beyond the accidents into Boeing’s design process for the aircraft — a retooled version of its workhorse 737 — and whether safety reviews and certification by U.S. regulators were compromised. Boeing was trying to stay competitive with the Airbus SE A320neo, which could fly farther and burn less fuel.The lawsuit was filed Monday in state court in Dallas, according to the union. The filing couldn’t be immediately confirmed at the court.Criminal ProbeThe complaint cited news reports, statements made by officials and other sources to support its allegations. Yet aside from a safety board recommendation, none of the official reviews and investigations into how the Max was designed and approved for flight have issued public findings. They include a criminal probe led by the U.S. Justice Department.Boeing has said there was no breakdown in the design, testing and Federal Aviation Administration approval of the Max.Both the Lion Air crash on Oct. 29 and the Ethiopian Airlines crash on March 10 occurred after a malfunction triggered a new feature, the Maneuvering Characteristics Augmentation System, to repeatedly push the planes into dives. The accidents killed a total of 346 people.Until the Lion Air crash in Indonesia, airlines and pilots hadn’t been told of the existence of MCAS, which had been installed to counteract the effects of the Max’s larger engines on the existing 737’s airframe.Training RequirementsBoeing also played down design changes in the Max to convince regulators and airlines that time-consuming training wasn’t needed because the plane was an update to the previous model, the 737 Next Generation, the lawsuit said.The planemaker didn’t share those differences, including MCAS, during work with Swapa and Southwest as recently as 2016, the union said. That persuaded the pilots group to include the Max with other 737 variants under a new contract, easing the rollout of the new plane for Boeing’s launch customer, Swapa said.“Had Swapa been aware of MCAS and the true extent of differences between the 737 NG and the 737 Max, it never would have agreed to pilot the 737 Max,” said the union, which represents nearly 10,000 Southwest pilots.The union decided to sue Boeing after failing to reach an agreement in talks that began in late August, said Jon Weaks, a Southwest captain and president of the labor group.Pilots are paid for time spent flying, and the grounding of the Max forced Southwest to cancel 30,000 flights, according to the union.Boeing has revamped the Max to prevent the same malfunction from occurring and is fine-tuning the plane’s flight control software. The manufacturer has targeted the fourth quarter for the grounding to be lifted.Southwest has said it would take about 45 days after the ban is lifted to have the Max ready to fly.The House Transportation and Infrastructure Committee last week asked Boeing to make available a company engineer who filed an internal ethics complaint this year about Boeing’s safety culture. The panel is investigating the certification of the Max by U.S. aviation regulators.(Updates with Boeing’s comment in sixth paragraph.)\–With assistance from Alan Levin and Julie Johnsson.To contact the reporter on this story: Mary Schlangenstein in Dallas at maryc.s@bloomberg.netTo contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Tony Robinson, Mark SchoifetFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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