Put Spread on BA on 5/9/2022

The Boeing Company (BA) designs, develops, manufactures, sales, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. 

The company operates through four segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital. 

On April 27th, Boeing (BA) reported a 1st Quarter March 2022 loss of $2.75 per share on revenue of $14.0 billion. The consensus estimate was a loss of $0.26 per share on revenue of $16.3 billion. Revenue fell 8.1% compared to the same quarter a year ago. Since then shares have formed a bearish "flag" and lower share prices are expected. 

We are playing a "put spread" where we are buying a higher priced put and selling a lower priced one. This limits our gains but lowers the risk too.

We will be trading May 20th Put Options

Entry Point: $148.50

Trading Range: $143.38 to $258.39

Trade Buy 1 May $150.00 Put at $6.00 Sell 1 May $135.00 Put at $1.50 For a net debit of $4.50 Profit/Loss Analysis Breakeven at $145.50 Maximum profit is $1,050.00 at strike of $135.00 Maximum loss is ($450.00) at strike of $150.00 Closing Summary Sold 1 May $150.00 Put at $10.00 Bought 1 May $135.00 Put at $3.00

Position closed on 5/27/2022 at price of $7.00 with a 55.56% gain in 18 days.

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