Boeing Stock Slips in Pre-Market, but Options Traders Show Divided Views
Boeing stock slips sharply in recent sessions amid turbulence from both operational incidents and mixed signals in the options market. As investors scramble to interpret conflicting data, the stock is drawing attention not only for its headline drops but for how traders are positioning themselves in its options.
Premarket drop after 787 Crash
On June 12, Boeing shares plunged 7-8% in premarket trading. Following an alarming crash of an Air India Boeing 787-8 Dreamliner shortly after takeoff in Ahmedabad, India. The aircraft carrying 242 people crashed near a civilian area. While details about casualties remain unclear, early investigations and Boeing’s initial statements rattled investor Confidence.
This incident came amid broader market anxiety due to escalating Middle East tensions and renewed US tariffs. The combined pressure pushed Boeing stock down over $196 per share, marking its steepest one-day slip in several weeks.
Options Trading: Bullish vs. Bearish
Despite the sudden fall, the options market shows a mix of sentiment; call buyers and put holders are both active. According to Benzinga, out of 15 notable recent option trades, 46% were bullish and 20% were Bearish, with the remainder neutral or mixed. NASDAQ data suggests traders placed 4 puts and 20 calls, reflecting roughly 33% bullish expectations versus 66% bearish on some measure.
In late May, a large volume of call options, around 186,932 contracts, were bought, representing a 55% jump above average volumes, hinting at renewed bullish views among speculators. Meanwhile, whale trades recorded balance positions: 45% bullish and 45% Bearish among 12 big-ticket trades.
Why This Matters
The tug of war in Boeing’s options reveals investor uncertainty:
- Bullish side: Many traders are betting on a rebound, pointing to resume deliveries to China and rising global air travel. Boeing recently announced restarting 787 deliveries to China and plans to ramp 737 Max production to 42 units monthly (reaching 47 by the end year).
- Bearish side: safety fears linger. The crash reignited concerns over Boeing’s prior issues with the 737 Max. Additionally, FAA oversight continues; recent comments from an FAA candidate put pressure on Boeing’s regulatory outlook.
Technicals & Analyst Outlook
Chart analysts view Boeing as long-term bullish. Trading View notes that the stock rebounded from historical support and could target $273-$448 depending on risk tolerance.
However, caution is warranted: recent drop after the crash and technical triggers from RSI point to short-term volatility.
From a fundamental standpoint, Boeing reached a $1.1 billion settlement with the DOJ over past crashes, part of a pivot to compliance improvements. It is also on track to return to profitability by 2026, with earnings outlook edging ahead of Dow peers.
What to Watch
- Safety investigations: Any findings from the 787 crash could impact recovery timelines.
- Delivery Update: Scaling up Max and 787 production, especially in China, will test Boeing’s execution capacity.
- Options Flow: Continued buying of calls vs puts may signal changing sentiment.
- Geopolitical stress: Rising tensions in the Middle East or further setbacks in global trade could compress demand.
Conclusion
Boeing stock slips sharply on safety concerns, but the options market paints a nuanced picture. While headlines spooked investors, triggering steep declines. Some traders remain optimistic, betting on a rebound, fuelled by production scale and cost discipline. Still, regulatory scrutiny and technical volatility could delay any sustained recovery. For investors, Boeing presents both opportunity and risk, with options activity serving as a real-time sentiment gauge.
Frequently Asked Queries
Boeing shares dropped around 7 to 8% premarket on June 12 due to an Air India 787 crash, reigniting safety fears. Combined with global tensions and tariffs, the move was swift.
Options volume rose sharply. Nearly half of recent large trades were bullish calls, while puts have also seen increased activity, signaling investor uncertainty.
Short-term effects include likely regulatory reviews and delivery delays. long-term impacts on investigation findings and the ability to maintain production momentum.
Many see a recovery. technical target range from $273-$448 if the support level holds. Fundamentals are improving, with profitability expected by 2026.
Investors should weigh the potential upside, resumed deliveries, and improving fundamentals against risks like safety reviews, regulatory scrutiny, and macro volatility. Follow other options, flow, and news updates closely.
Disclaimer:
This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.