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Boeing Options Traders See Higher Prices Ahead

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Boeing Options Traders See Higher Prices Ahead

Boeing Co (NYSE: BA) was trading up 1.41% Thursday afternoon and throughout the day a number of options traders purchased over $2 million worth of calls, adding to the $543,936 purchased Monday.

The airline sector has, so far, failed to gain headway and return to its pre-COVID-19-pandemic levels despite customers returning to the skies to work and travel. Boeing’s stock is trading down over 35% from its February 2020 high of $349.95.

Multiple airlines have begun purchasing Boeing’s 737 Max planes and on Wednesday the Federal Aviation Administration (FAA) said the 737 MAX was performing in-line or better than any other plane.

Options traders also believe Boeing’s stock is set to fly higher.

The Boeing Options Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

  • At 9:42 a.m., Thursday a trader executed a call sweep, near the ask, of 396 Boeing strike price of $235 expiring on May 28. The trade represented a $93,060 bullish bet for which the trader paid $2.35 per option contract.
  • At 10:18 a.m., a trader executed a call sweep, near the ask, of 250 Boeing strike price of $225 expiring on May 14. The trade represented a $107,500 bullish bet for which the trader paid $4.30 per option contract.
  • At 10:19 a.m., a trader executed a call sweep, near the ask, of 582 Boeing strike price of $227.50 expiring on May 14. The trade represented a $154,230 bullish bet for which the trader paid $2.65 per option contract.
  • At 10:20 a.m., a trader executed a call sweep, near the ask, of 248 Boeing strike price of $225 expiring on May 14. The trade represented a $101,680 bullish bet for which the trader paid $4.10 per option contract.
  • At 10:39 a.m., a trader executed a call sweep, near the ask, of 500 Boeing strike price of $227.50 expiring on Jan. 21. The trade represented a $950,500 bullish bet for which the trader paid $19.01 per option contract.
  • At 10:39 a.m., a trader executed a call sweep, near the ask, of 200 Boeing strike price of $250 expiring on May 14. The trade represented an $80,000 bullish bet for which the trader paid $4 per option contract.
  • At 11:18 a.m., a trader executed a call sweep, at the ask, of 200 Boeing strike price of $222.50 expiring on May 21. The trade represented a $135,000 bullish bet for which the trader paid $6.75 per option contract.
  • At 1:02 p.m., a trader executed a call sweep, near the ask, of 600 Boeing strike price of $240 expiring on June 18. The trade represented a $252,000 bullish bet for which the trader paid $4.20 per option contract.
  • At 2:31 p.m., a trader executed a call sweep, at the ask, of 200 Boeing strike price of $220 expiring on May 21. The trade represented a $142,000 bullish bet for which the trader paid $7.10 per option contract.

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 the 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 were trading up 0.84% to $222.64 market close Thursday at publication.

(Photo: Boeing)

 

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