by Ian Harvey
October 26, 2017
Boeing Co (NYSE:BA)
Here is an overview of Boeing Co (NYSE:BA) winning options put trade after reporting earnings. This options trade was recommended, as a consideration, on Monday, October 23, 2017 in the article Earnings Predictions for the Week Beginning October 23, 2017”; producing great profits within a couple of days of executing the trade!
Aerospace giant Boeing Co (NYSE:BA) is confirmed to report earnings before the market opens. Analysts expect Boeing to report a 24% drop in Q3 EPS to $2.66, but a 0.7% rise in revenue to $24.06 billion, marking the first gain after four straight declines.
The stock has drifted higher by 18.5% from its open following the company's last earnings release to be 31.6% above its 200 day moving average of $201.23.
Q3 total deliveries were up 7.4% year-over-year to 202, which included 145 narrow-body 737s and 35 widebody 787 Dreamliners.
However, Boeing faces a backlash overseas over the company’s situation with Bombardier Inc.
Option trade to consider: Buy the BA NOV 17 2017 255.000 PUT at approximately $3.80.
Boeing reported quarterly results before market open on the 25th of October, topping the Street's estimate on earnings and raising guidance.
However, Boeing suffered a $329 million charge for its KC-46 aerial refueling tanker program. After-tax margin rolled in at 6.8%, down from the year-ago margin of 9.3%.
Boeing’s cash flows during the third
quarter were not as impressive as in the previous quarter. Boeing’s operating
cash flow in the third quarter was $3.396B. In the first nine months, operating
cash flow was $10.44B.
The free cash flow for the quarter was $3B which was in the lower growth rate compared to the first six months of 2019.
At the time of the recommendation, Monday morning, BA stock price was sitting at $264.69.
However, Boeing shares were down to as low as $254.50 during the day.
Also, driving shares down was the ugly picture U.S. stock indexes painted midday Wednesday, as losses shaped up across the board.
By the end of trading Wednesday the stock price had settled at $258.42; down -7.57 or -2.85%.
So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 52% within a couple of days.
ACTION TO TAKE…….
As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.
Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
What To Do Now…….
If you interested in being part of this profitable action just click here……