DailyPlay – Opening Trade (BA) – January 8, 2025

BA Bullish Opening Trade Signal

Investment Rationale

The Boeing Company (BA) recently broke out above its trading range with strong momentum, outperforming the S&P 500, and presenting an opportunity for further upside to our $190 target. From a fundamental perspective, BA appears moderately undervalued. The company trades at 1.45x price-to-sales, significantly below the industry average of 1.81x, despite its faster-than-expected revenue growth rate of 9.77%, compared to the industry average of 6.45%. Additionally, Boeing’s expected EPS growth is projected at 34.5%, far surpassing the industry average of 12.27%. While BA is currently operating with net margins of -10.9%, compared to the industry average of 7.10%, its recovery trajectory suggests substantial upside potential as it moves out of a net loss in 2025.

BA – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 2 BA Mar 21, 2025 $170/$190 Call Vertical Spreads @ $8.05 Debit per Contract.

Total Risk: This trade has a max risk of $1,610 (2 Contracts x $1,610) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $1,610 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue its bullish trajectory.

1M/6M Trends: Neutral/Bullish

Relative Strength: 5/10

OptionsPlay Score: 99

Stop Loss: @ $4.03 (50% loss of premium)

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Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Tuesday ‘s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

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