Boeing Flies High!

And, “Earnings Predictions Members” Make Profits Of 647%! 
As Well, Another Options Trade
Is Included For Consideration!

by Ian Harvey

February 11, 2019


Boeing Co (NYSE:BA)

Aerospace giant Boeing Co (NYSE:BA) reported earnings January 30, 2018 and exceeded expectations. The results are a demonstration of Boeing's positive earnings momentum. Boeing is set for another strong year of growth. And due to the exceptional earnings resultsEarnings Predictions Membersmade potential profits of 647%.

The Dow component Boeing saw its stock surge after the company reported year-end results that smashed Wall Street's expectations, with record revenue and airplane deliveries driving the blowout. Boeing shares surged 6.3 percent, closing trading at $387.72 a share. From then, the stock price continued upwards to $413.88.

BA stock has moved higher by 7.9% in the past month, while it is also above its 20 Day SMA too. This combination of strong price performance and favorable technical, could suggest that the stock may be on the right path.

Boeing is set for another busy year given that management expects an uptick in demand for wide-body aircraft at the start of the next decade. As well, it is expected that there will be margin expansion at Boeing Commercial Airplanes and further double-digit revenue growth at Boeing Global Services.

Boeing investors can expect another strong year for the company.




The Trade……

…….from……“Earnings Predictions for the Week Beginning January 28, 2019

The Details Presented Previously……..

Aerospace giant Boeing Co (NYSE:BA) is scheduled to report before the market opens. The consensus earnings estimate is $4.52 per share on revenue of $26.92 billion; but the Whisper number is higher at $4.61 per share. Consensus estimates are for earnings to decline year-over-year by 5.83% with revenue increasing by 6.12%.

This airplane builder has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 3.27%.

For over 100 years, Boeing has kept its eye on the skies. From planes to rockets, the aerospace company has come a long way since William Boeing began building 'flying boats' for the U.S. Navy in 1916. 

While Boeing's technology has certainly evolved, it has maintained its relationship with the U.S. government with its defense products.  

As tensions with China continue, expect further business for Boeing as a ' Cold War atmosphere' develops.

On balance, Boeing offers investors a compelling mix of revenue growth and margin expansion. The long-maligned airline industry is in the middle of a period of profitability and efficiency like it has never seen before.

Boeing enjoys a solid inflow of contracts from both the Pentagon as well as foreign allies, courtesy of the company's varied product offerings…..

… more…..

The Trade……..

** OPTION TRADE: Buy BA FEB 15 2019 370.000 CALL at approximately $7.30

The options were actually bought at $5.80 due to the market pullback on the Monday before earnings.

The Result So Far………

Dow component Boeing’s stock surged Wednesday after the company reported year-end results that smashed Wall Street's expectations, with record revenue and airplane deliveries driving the blowout.

Boeing reported a massive fourth-quarter earnings result of an adjusted $5.48 per share, beating expectations of analysts by 91 cents. Revenue was also strong, at $28.3 billion — more than $1 billion than analysts expected.

The aerospace giant reported $101.1 billion in annual revenue, breaking the $100 billion mark for the first time. Boeing also provided a strong 2019 forecast. Boeing expects next year's earnings of $19.90 to $20.10 per share. Wall Street was expecting $18.31 a share for full-year 2019 earnings.

Fourth-quarter earnings from operations jumped 40 percent from a year earlier as margins expanded. The company posted $4.2 billion in earnings from operations, compared with nearly $3 billion a year earlier.

The Profits…..

So, for Earnings Predictions Members, who managed to execute this trade recommended by Stock Options Made Easy, and then exit yesterday; a profit of 647% was to be made. On the day of the report this trade had made a potential profit of 306%; going from $5.50 to $23.55. For those that continued to hold and then sell a week later, February 6, saw the options trade sell price soar to $43.33.

Therefore, one options contract would provide a profit of $3,753.00. (Easily pays for all the membership offers by Stock Options Made Easy, and a great deal of profit left over!)



Moving Forward…..

Shares of the aviation giant have soared 40 percent since its December 26 low and 27 percent this year as of last week’s Tuesday's close, when the stock broke above $400 for the first time ever to a record high. And then on Wednesday, the stock price hit $413.88.

Since then the stock price has pulled back and is now looking as if it is ready to continue its upward momentum due to several reasons…..

  • momentum and demand for the 737 aircraft,
  • when economic growth slows, airlines are likely to remain profitable, so demand for new aircraft will hold up much better than it did during previous economic downturns,
  • earnings are less cyclical, as Boeing would be able to keep its margins strong in poorer market conditions. This should reduce its downside when end demand eventually slips,
  • the trade dispute is not slowing growth down,
  • the defense business is picking up,
  • has plenty of free cash flow,
  • growing global services,
  • a significant investment in Aerion,
  • strength in the services sector, and
  • a diversification in the business model thanks to a push into the defense sector.

Also, analysts are projecting further growth for Boeing…..

"Any way you slice it here … we do like Boeing," Susquehanna's Stacey Gilbert said last Tuesday. Gilbert says she likes the stock despite the uncertainty over when, or even if, a trade truce with China will take place.

"This was basically your poster child for the China trade tensions. Whenever there was a negative headline … Boeing stock always declined. This is a name that we do like even with those tensions. If tensions cause a pullback we would certainly look to add to positions here," she said. She also noted that based on the bets options traders are making, the overall market sentiment "continues to be bullish."

And then, Susquehanna analyst Charles Minervino initiated coverage on Boeing with a positive rating last month. His $453 price target implies a 10 percent jump from Tuesday's close.

Like Gilbert, Miller Tabak's Matt Maley believes the company's fundamentals remain strong. However, given the stock's record and recent run, he wouldn't chase it at current levels.

"Great move, all-time high. That's the kind of breakout you want to see. But on a very short-term basis nothing moves in a straight line. We would like to see, it would actually be healthy, if the stock [were] to pull back here and then take another shot at trying to break out of the top end of that pattern," he said.

And this is what is happening now!

Also, JPMorgan’s Seth Seifman reiterated an Overweight rating on Boeing and raised his price target by $25, to $450, implying nearly 11% upside from the current market price. The move comes on the heels of his increased 2020 free-cash-flow estimates, which sit slightly above consensus—although he expects Street estimates will rise to meet his. Seifman wrote that Boeing is “consciously trying to shape the industry to capture more value for itself, which could mean strong relative performance and potential upside to estimates,” which means that despite positive sentiment on the stock, it isn’t “over-owned” at these levels.

Therefore, you may wish to consider a NEW Trade……..

** OPTION TRADE: Buy BA APR 18 2019 420.000 CALL at approximately $10.85. Sell price is left to your own judgment.


As you would have by now realized, some of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but it is obvious that it did apply in this case;  the earnings report certainly helped boost the profits when presented. During earnings season this strategy of predicting earnings has been very profitable.

Sometimes it is our approach 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 – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been exceptional.

An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.

It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!

Strategies to Consider……

When To Exit A Trade Based On Earnings?.....Read Article


"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……

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.

If you not a member and interested in being part of this profitable action just CLICK HERE.

Other Membership Options…….

If you interested in "Earnings Predictions" just click here……

or "Mentorship Program" here....

Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.

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