New Tailwinds Backing Boeing Earnings & BA Example Options Trade

Core Viewpoint - Boeing is expected to report an adjusted loss of 40 cents per share with revenue nearing $22 billion for the quarter, indicating a focus on cash flow and production updates as key indicators of financial performance [1][4][11]. Financial Expectations - Analysts anticipate a significant focus on Boeing's cash flow and production guidance during the upcoming earnings report, particularly regarding the ramp-up of the Max production [4][7]. - The stock has seen a rise of over 40% in the last 12 months and is currently trading near its 52-week high, although it has recently pulled back by 1% [2][10]. Production and Supply Chain - Improvements in supply chain resilience have been noted, with fewer issues related to non-conforming components and enhancements in key production indicators [5][6]. - The transition to a higher build rate for the Max is crucial for Boeing's financial performance, and analysts are looking for reassurances that this transition is proceeding as planned [7][11]. Market Sentiment and Trading Strategy - The implied volatility surrounding Boeing's earnings report is elevated but not excessively high, with the options market pricing in a potential move of about $11, which is less than 4.5% on a $250 stock [12][13]. - A trading strategy involving a neutral to bullish stance has been suggested, utilizing a short put vertical to capitalize on the stock's potential upward movement while managing risk [14][17].