Bearish – BA $ 378.99 – Industrial
The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.
On Friday’s Options Action, the crew analyzed the performance of Boeing stock after the recent airliner crash. Boeing fell about 10% following the news, but there are considerable downside risks as investigations continue. Coupled with strong support near $290 lows, there are risks of further declines. Expecting BA to trade lower, Michael Khouw suggests buying a May 340/315 1×2 Put Ratio for a $0.00 even. As of Friday’s close, these puts were trading at a $0.30 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: BA Options Action Video