Boeing (BA) Offering Possible 78.57% Return Over the Next 16 Calendar Days

Boeing's most recent trend suggests a bearish bias. One trading opportunity on Boeing is a Bear Call Spread using a strike $385.00 short call and a strike $390.00 long call offers a potential 78.57% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $385.00 by expiration. The full premium credit of $2.20 would be kept by the premium seller. The risk of $2.80 would be incurred if the stock rose above the $390.00 long call strike price.

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

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

The RSI indicator is at 59.3 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

Ryanair to wait for aircraft cycle to turn before placing more orders – O'Leary
Tue, 01 Oct 2019 09:14:34 +0000
Ryanair will wait until the next turn of the cycle before it can place an order for more Boeing or Airbus jets at cheaper prices, Chief Executive Michael O'Leary said on Tuesday. Ryanair is one of the biggest customers of Boeing's grounded 737 MAX aircraft, with 135 firm aircraft orders and 75 options, and O'Leary said the company's shift to a group structure could see the company take on Airbus jets into its fleet in the medium term. The MAX has been grounded, Airbus are pricing up, Boeing are pricing up because they've nothing to sell,” O'Leary said at a Reuters Newsmaker event in London.

PRESS DIGEST- Wall Street Journal – Oct. 1
Tue, 01 Oct 2019 05:41:22 +0000
The following are the top stories in the Wall Street Journal. – Secretary of State Mike Pompeo was among the administration officials who listened in on the July 25 phone call between President Trump and Ukraine's president, a senior State Department official said Monday, a disclosure that ties the State Department more closely to the House impeachment inquiry. – Endo International Plc, Johnson & Johnson and other drugmakers that face litigation over the opioid crisis are exploring a way to settle the cases by participating in Purdue Pharma LP's bankruptcy.

Southwest pilots don’t expect Boeing 737 Max to return until February or March
Tue, 01 Oct 2019 00:53:00 +0000
Pilot-union leaders at Southwest Airlines say it could be February or March before their airline resumes flights using the Boeing 737 Max.

Boeing CEO Sees ‘Endgame’ in Drive to Lift 737 Max Grounding
Mon, 30 Sep 2019 22:24:41 +0000
(Bloomberg) — Boeing Co. is in the “endgame” of preparing its 737 Max to return to the commercial market after two deadly crashes prompted a global grounding more than six months ago, Chief Executive Officer Dennis Muilenburg said in an interview.The planemaker is fine-tuning a software upgrade for the Max’s flight-control computers in its simulation lab and girding for the evaluation of a final version by line pilots. The company is discussing the timing of the certification flight with U.S. officials, although no date has been set. That’s the final hurdle before the Federal Aviation Administration determines whether the flying ban can be lifted, Muilenburg said Monday.The CEO is also shaking up Boeing’s organizational structure to sharpen its focus on safety after the Ethiopian and Lion Air tragedies, although the moves stop short of the leadership purge sought by some victim advocates.“I’m very confident in the team we have,” Muilenburg said, pointing to a series of personnel changes the company has quietly made since March. The new appointments range from the head of the 737 program, to a vice president of engineering for the commercial airplane business and its supply-chain chief. “We’re always putting our best people in the toughest assignments, and that’s the case here.”Boeing fell less than 1% to $380.47 at the close in New York. The shares have tumbled 10% since a March 10 accident in Ethiopia triggered the global flying ban.Acting on a recommendation from the board, Muilenburg is creating a new product and services safety organization to centralize responsibilities across the planemaker’s business and operating units. The new group will be run by Beth Pasztor, a 34-year Boeing veteran who will report to the company’s chief engineer as well as a new board committee. Such an arrangement should alert directors of emerging safety and certification matters.Pasztor will have sweeping responsibility for all aspects of product safety, including investigating concerns raised anonymously by employees, Boeing said in a statement Monday. The company’s accident-investigation team, safety-review boards and engineering and technical experts who represent the Federal Aviation Administration in aircraft certification will all report to Pasztor, who previously oversaw product safety at Boeing’s jetliner division.Best Qualified“Beth is a proven leader, she’s a collaborator,” Muilenburg said in an interview from the 36th-floor executive suite in the company’s Chicago office tower. He also considered external candidates before deciding that Pasztor’s deep knowledge of Boeing would give her a running start. “She, from a technical qualification standpoint, is the best.”The CEO is under pressure to show airlines, travelers and global regulators that safety is woven into the century-old manufacturer’s designs and culture. Both have been called into question given the lapses that have prompted regulators to ground two brand-new Boeing jetliners this decade.The company had already rung up $8.3 billion in Max-related expenses through July, and the costs of maintaining production and compensating customers are certain to grow the longer the grounding lasts.The final steps to lifting the ban are clearly defined, and timing will be determined by the FAA, Muilenburg said. Once a final version of the flight control computer update is ready, Boeing will invite airline pilots to test-fly it in the company’s engineering simulators known as e-cabs. A separate team of pilots will review the company’s updated training material. After that FAA pilots will test the changes in a Boeing 737 Max bristling with sensors and other flight-testing equipment.Certification Timeline“That’s the certification endgame,” Muilenburg said. “We’re still marching to a timeline of return to service early in the fourth quarter, but I want to reiterate the timing will be determined by regulators.”The Max hasn’t flown commercially since just after the March crash of an Ethiopian Airlines jet. A Lion Air plane went down off the coast of Indonesia in October. In both disasters, a once-obscure flight-control system went haywire, nudging the planes’ noses down until pilots were overwhelmed. In 2013, the 787 Dreamliner was banned for three months after fires on two planes from lithium-ion batteries.Directors last week signaled that they would closely monitor the company’s progress under Muilenburg. A new board committee is devoted to overseeing the safe design, development and production of the company’s aerospace product lineup. “Safety-related experience” will be a criteria to be considered in choosing future directors.“This is an engineering company, it needs an engineering culture and engineering management,” aerospace analyst Richard Aboulafia said last week. “It deviated pretty far from this at the time when the Max was being developed.”NTSB ReportThe U.S. National Transportation Safety Board last week called for a renewed focus on how a cacophony of flight-deck alerts can distract and overwhelm pilots. The agency’s report on the Max tragedies also provided clues to one of the mysteries of the disasters: how Boeing safety assessments for a software-system linked to the crashes could still comply with FAA design principles.Boeing’s simulator tests of the so-called MCAS system focused on pilots’ response to indications that a motor on the horizontal stabilizer was moving the plane’s nose down without their input.But the hazard tests never examined specific failure modes that could cause MCAS to kick on — including failure of a key sensor that tripped multiple cockpit warnings and bewildered pilots on the Lion Air and Ethiopian Airlines flights.Boeing, following recommendations from the the board last week, will have the company’s tens of thousands of engineers report to the company’s chief engineer, Greg Hyslop. That will promote a more consistent approach to meeting operational priorities, while enabling senior managers to spot and elevate talented engineers, Boeing said. The move mirrors an earlier restructuring of finance professionals, who now report directly to Boeing Chief Financial Officer Greg Smith.New NetworkMuilenburg said he doesn’t expect the structural shift to substantially change the day-to-day work of those carrying out design and testing. But connecting the technical experts to other engineers across the company will create a new, informal network they can consult when problems crop up, he said.He is also expanding Boeing’s safety-management system and safety-review boards, which are now led by senior executives, including Hyslop and business division chiefs. Boeing has also invested in enhanced flight simulation and computing capabilities. Software engineers in recent weeks have run 390,000 flight hours — the equivalent of flying 45 years — on the 737 Max.In addition, the company is already pouring money into researching the design of future flight decks to account for human factors. Boeing is planning future investment in aerospace talent — both within the company, and without as it renews its focus on training pilots, mechanics and attracting students to science and engineering, Muilenburg said.(Adds details of pilot training in final paragraph.)To contact the reporter on this story: Julie Johnsson in Chicago at jjohnsson@bloomberg.netTo contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Susan WarrenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

Boeing (BA) Stock Sinks As Market Gains: What You Should Know
Mon, 30 Sep 2019 21:45:09 +0000
Boeing (BA) closed at $380.47 in the latest trading session, marking a -0.62% move from the prior day.

Related Posts