[Options] Booking My Summer Flights Now While They Are Cheap

Sean McLaughlin
February 15, 2023

In the options market, summer flights priced in Boeing options are pretty cheap right now.

I think I'll be looking to take a flight to a fun European destination if I can get a bullish position in Boeing to pay for it. Maybe I'll even fly on a Boeing jet?

During our analyst meeting this morning, we kicked around a few bullish ideas, but it was this Boeing $BA chart that rose to the top:

We're going to get involved with a bullish options spread that gives us through the summer to most efficiently express this thesis.

Here's the Play:

I like buying a $BA September 220/270 Bull Call Spread for an approximately $17.25 debit. This means I'll be long the 220 calls and short an equal amount of 270 calls. The debit is the absolute most I can lose in the trade:

While our risk is clearly defined, I'll look to exit this position if we see $BA lose the $205 level. Any closing price below 205 is my signal to ask for a refund on my flight and close the position down to salvage whatever premium is left in the spread.

If $BA does in fact take flight, then I'll look to close the spread down for a profit when I can get a $33.75 credit for it. This would be capturing 50% of the maximum possible gain, without having to endure any more turbulence all the way into September. I'd rather take my profits early and look into my next best idea.

If you have any questions on this trade, please send them here.

ASO subscribers who missed last week’s live video Jam Session where we reviewed activity in our options portfolio from the past week can catch it here.

~ @chicagosean

P.S. We do trades like this regularly. If you'd like to leverage Best-in-Class technical analysis into smarter directional options trades, try out All Star Options Risk Free! Or give us a call to learn more: 323-421-7991.

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