Litigation, Tariffs And Deliveries Could Drive BA Volatility — Trade Boeing's Moves With BOEU And BOED

Few companies straddle the line between geopolitics and earnings like The Boeing Company BA. With duopoly status alongside Airbus, Boeing is one of America's most strategically important manufacturers – but its past safety crises, recent legal battles and global supply chain entanglements have made it a magnet for headline-driven price swings.

Traders looking to express a short-term view – bullish or bearish – on Boeing can use Direxion's Daily BA Bull 2X Shares (BOEU) or Daily BA Bear 1X Shares (BOED) to tactically position around fast-moving catalysts.

Here's what could move BA stock in the days and weeks ahead:

1. DOJ Litigation Reopening — Will Boeing Be Cleared Or Penalized Again?

Boeing is once again under the legal spotlight. After the January 2024 door plug incident on an Alaska Airlines 737 MAX, the Department of Justice (DOJ) reopened its criminal case, alleging Boeing breached a 2021 settlement. The case had been paused, but a new ruling or dismissal could drop any day.

Short-term trading event: DOJ's decision on re-prosecution under the Trump administration – a binary catalyst that could sharply move BA stock.

Traders should also monitor headlines from the U.S. District Court, where debate continues over the appointment of a federal monitor.

2. Aircraft Deliveries To China Resume – But For How Long?

After years of tit-for-tat trade tensions, China has finally lifted its ban on new Boeing aircraft deliveries. On April 12, 2025, a temporary U.S.–China tariff truce was reached, and deliveries resumed. However, the deal is fragile – and the re-escalation of tariffs or geopolitical friction could halt progress overnight.

Short-term trading event: Any Trump administration statement on tariffs, or Chinese government response — a likely volatility trigger for BA.

Watch for monthly delivery reports and commentary from Chinese airlines, which may hint at the pace of order resumption or new cancellations.

3. Record Qatar Airways Deal — Will It Materialize Fully?

Boeing made headlines with a historic deal to sell up to 210 widebody jets to Qatar Airways, including a massive 787 Dreamliner order. However, traders should note that parts of this deal remain non-binding and subject to geopolitical risk.

Short-term trading event: Final contract signings, production/delivery timeline announcements, or Middle East political shifts may impact sentiment fast.

A signed follow-up agreement or order revision could cause BOEU or BOED to respond sharply.

4. Upcoming Q2 2025 Earnings — Will Margins And Free Cash Flow Hold Up?

Boeing’s Q1 earnings showed improving revenue ($19.5B, +18% YoY), but the company still posted a net loss. Its Q2 2025 earnings call, expected in July, will be closely watched for:

· Updated free cash flow guidance

· Margin recovery in the commercial division

· Any revisions to delivery targets or R&D spending

Short-term trading event: Q2 earnings report in mid-July – a potential volatility window for leveraged ETF traders.

Traders will want to keep an eye on Boeing's commentary around defense spending and commercial backlog trends.

5. FAA And Safety Oversight Changes — Could News Break Before The Election?

After recent incidents, the FAA and Biden-era regulators were pushing for increased oversight. But under Trump, pressure is building to ease regulation on U.S. manufacturers like Boeing.

Short-term trading events: FAA policy updates, Congressional hearings or new whistleblower claims could jolt market expectations quickly.

Any changes to FAA inspection requirements or liability protections would have major near-term trading implications.

6. Macro Tailwinds (Or Headwinds): Rates, Oil And Recession Watch

Boeing's business is tied to airline demand, and that demand is influenced by:

· Oil prices (impacting airline CapEx)

· Interest rates (impacting aircraft financing)

· Recession fears (impacting global air travel and new orders)

Short-term macro trading events: Next Fed meeting, CPI/PPI data, oil inventory reports.

A negative macro shock could hurt BA and fuel BOED. A soft landing narrative or strong air travel rebound could power BOEU.

Trade Boeing's Moves With Tactical Precision

For active traders who expect short-term volatility in Boeing stock, Direxion's Single Stock Daily LETFs offer daily leveraged or inverse exposure:

BOEU: Bullish traders can seek 2X daily exposure, before fees & expenses, to BA's performance.

BOED: Bearish traders can seek -1X daily inverse exposure, before fees & expenses, to BA's performance.

Whether you’re reacting to legal updates, trade developments or earnings catalysts, these ETFs provide a flexible way to trade around the next major Boeing headline.

Use With Caution: Built For Short-Term Tactical Trades Only

BOEU and BOED are designed to deliver daily performance results and are not intended to be held long term. Due to the effects of daily compounding, returns over periods longer than a single day may differ significantly from the underlying stock's performance.

These ETFs are best suited for active traders who closely monitor positions and understand the risks of leverage and inverse.

Click here to learn more about Direxion's Boeing-focused Single-Stock Daily Leveraged ETFs.

Featured image from Shutterstock.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.

An investor should carefully consider a Fund's investment objective, risks, charges, and expenses before investing. A Fund's prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund's prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund's prospectus and summary prospectus should be read carefully before investing.

Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock's performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock's performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock's performance increases, and the Bear Fund will lose money even if the underlying stock's performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in BA.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund's investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund's other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund's correlation with BA and may increase the volatility of the Bull Fund.

Daily Correlation Risk – A number of factors may affect the Bull Fund's ability to achieve a high degree of correlation with BA and therefore achieve its daily leveraged investment objective. The Bull Fund's exposure to BA is impacted by BA's movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to BA at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to BA increases on days when BA is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund's ability to achieve a high degree of inverse correlation with BA and therefore achieve its daily inverse investment objective. The Bear Fund's exposure to BA is impacted by BA's movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to BA at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to BA increases on days when BA is volatile near the close of the trading day.

The Boeing Company Investing Risk – BA faces risks associated with: risks associated with commercial airlines, including demand for commercial aircraft and related services and commercial airlines sales contract terms; adverse government regulations; regulatory compliance costs; supply chain and manufacturing disruptions; litigation and government inquires and investigations; changes in U.S. government defense spending or a priorities; among other risks.

Industrials Sector Risk — Stock prices of issuers in the industrials sector are affected by supply and demand both for their specific product or service and for industrials sector products in general.

Aerospace and Defense Industry Risk — The aerospace and defense industry can be significantly affected by government regulation and spending policies because companies involved in this industry rely, to a significant extent, on government demand for their products and services.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Concentration Risk, Market Risk, Non-Affiliation Risk, Security Volatility Risk and Cash Transaction Risk. Additionally, for the Direxion Daily BA Bear 1X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.Distributor: ALPS Distributors, Inc.