Shares of Boeing are set to soar, says trader


From hot to not.

Boeing shares started 2018 on fire, rallying 20 percent in January. But it’s been in a holding pattern ever since, registering a scant return of 0.13 percent since Jan. 31. Now, one chart watcher says Boeing is about to throttle foward again.

“Boeing has been in consolidation for a long period of time, and it looks like we’re ready to move up,” Todd Gordon, founder of, said Thursday on CNBC’s “Trading Nation.”

On a chart of Boeing, Gordon notes that the stock recently broke through a downward trend that served as resistance through the summer.

That leads Gordon to believe that the former resistance at $353 is now the stock’s new support level, and Boeing will rally. It closed on Thursday at $355.46 a share.

Gordon is looking for Boeing to return to its highs reached in early June, which was around $375.

As a result, Gordon wants to buy the October monthly 365-strike calls and sell the October monthly 375-strike calls for a total of $2.93, or $293 per options contract. This means that should Boeing close below $365 on Oct. 19expiration, then Gordon would lose the $293 he paid for the trade. But should Boeing close above $375 on Oct. 19expiration, he could make a maximum reward of $707.

Shares of the Dow component are up 21 percent on the year.

Source link

Products You May Like

Articles You May Like

Stocks making the biggest moves midday: FedEx, Viacom, Tencent Music
Guess shares tumble on earnings shortfall as Levi Strauss IPO looms
Comcast announces Flex streaming product and platform
China trade talks are now more about trust than the trade gap
China’s tech-savvy millennials fueling interest in trading US stocks

Leave a Reply

Your email address will not be published. Required fields are marked *