Boeing (BA): Trading Opportunity!

BA is one of my favorites in option trading. Look at the chart pattern and the swing between high and low! Strategy: Short at Resistance and Long at Support.

BA is getting near to the support. Waiting to take profit for Short position and prepare to setup the next trade.

BA is good for trading but not for investing unless you have very strong heart. You look at the yo-yo wild swing pattern and you will know why.

See previous analysis of Boeing (BA) here.

BA Dec12-2014

Boeing (BA): Descending Triangle

Boeing has been trading within a Descending Triangle consolidation mode for many months. This chart pattern is not for investor (cannot make money from buy low sell high strategy) because the stock price is moving side way.

However this chart pattern is very good for Option traders and range trader (using CFD) for short term trading.

BA Nov6-2014

Option Strategy

  • Short Vertical Call Spread near Resistance – Bearish Direction
  • Short Vertical Put Spread near Support ($119 has been a reliable support, also the 38.2% Fibonacci Retracement Level) – Bullish Direction
  • Short Iron Condor between $117 and $131 – Non Directional & Premium Collection
  • If $119 support is broken, Long Put if Vega is low.

Range Trading using CFD Strategy

  • Short at Resistance (Declining Trend Line) 
  • Long at Support (at about $119)
  • About $10 range

Original Post by Marubozu My Stocks Investing Journey

Boeing (BA): Rejected at 200D SMA

Technical Analysis: 

Rejected at 200D SMA with bearish engulfing candlestick reversal pattern. Expect to move in bearish direction to the next support of $120. Medium term range bound between $120 and $130.

BA Sept1-2014

Fundamental Analysis:

BA Fundamental Sept1-2014Trade Setup

  • Strategy: Short Term Directional Bearish Trade.
  • Target: $120
  • Short Call Spread BA 125/130 Oct 2014 (2 contracts)
  • Max gain @ expiration $536
  • Max loss @ expiration $464
  • B/E @ expiration $127.65
  • Reward vs Risk (RoC) = 1.15
  • Probability OTM (short leg) = 43.69%
  • Profit target = $364 (at $120 support)
  • Exit Conditions:
    • When there is a trend reversal at the support ($120)
    • Break $130 resistance.
    • Reach 80% of Max Profit (ie. $429)

Original Post by Marubozu My Stocks Investing Journey