Trade Alert – (BA) June 23, 2025 – TAKE PROFITS – SELL

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

Trade Alert – (BA) – TAKE PROFITS

SELL the Boeing (BA) July 2025 $165-$175 in-the-money vertical Bull Call debit spread at $9.50 or best

 

Closing Trade

6-23-2025

expiration date: July 18, 2025

Portfolio weighting: 10%

Number of Contracts = 12 contracts

I am going to use the surprisingly strong market this morning to take profits here. With the world on the verge of WWIII, markets seem expensive here.

With 58.3% of the maximum potential profit in hand in only 6 trading days, the risk/reward of continuing 18 more trading days until the July 18 option expiration is no longer favorable.

This trade takes me to a 90% cash position.

I am therefore selling the Boeing (BA) July 2025 $165-$175 in-the-money vertical Bull Call debit spread at $9.50 or best.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and lower your offer by 10 cents with a second order.

If you don’t want to sit in front of a computer screen all day or live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like  $9.50, $9.45, $9.40, and $9.35. You should get done on some or all of these.

And I have to admit that I am partial to this company, as I am one of the few living rated pilots for the WWII Boeing B-17 bombers flown at airshows. There are only four planes left in flying condition from an original production run of 12,731.

During the 1990s, the last of the WWII bomber pilots were dying off, and the fear was that no one would be left to pilot the remaining examples. I made a generous donation to the Experimental Aircraft Association and then climbed into the cockpit.

For more about this fabled company, see my extensive research piece below.

This was a bet that Boeing (BA) would not fall below $175 by the July 18 option expiration day in 24 trading days. This expiration benefits from two national holidays.

Here are the specific trades you need to exit this position:

Sell 12 July 2025 (BA) $165 calls at………………………………$37.00

Buy to cover short 12 July 2025 (BA) $175 calls at………….$27.50

Net Proceeds:……………………..…….………..………………………$9.50

Profit: $9.50 – $8.80 = $0.70

(12 X 100 X $0.70) = $840 or 7.95% in 6 trading days.

 

 

 

If you are uncertain on how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

 

 

 

(BOEING STOCK IS READY FOR TAKEOFF), (BA)

Boeing Stock is Ready for Takeoff.

My family has a very long history with Boeing (BA). During WWII, my dad got down on his knees and kissed the runway when the B-17 bomber in which he served as tail gunner (two probables) made it back to Guadalcanal, despite the many holes in the fuselage.

Some 40 years later, I got down on my knees and kissed the runway when a tired and rickety Boeing 707, held together with spit and bailing wire, which was first delivered as Dwight Eisenhower’s Air Force One in 1955, flew me and the rest of Reagan’s White House Press Corp to Tokyo.

I even tried to buy my own B-17 bomber in the nineties but was outbid by Paul Allen on behalf of his new Flying Heritage Collection at Washington’s Paine Field.

Note to self: never try to outbid somebody like the late Paul Allen again.

 

 

Boeing Built Them to Come Home

So when I received an invitation from senior management to inspect the plane a week before its formal launch, I carved out the extra time from my Seattle strategy luncheon to make a quick trip to the Everett, Washington production facility.

Driving there, you are overwhelmed by the enormous scale of things, with a gigantic hangar lined with spanking new 737s in various stages of colorfully painted colorful foreign airline logos. If Picasso painted on a grand scale, as Christo did, this is what the masterpiece would look like.

The 737 MAX is such a great leap forward on so many fronts that airlines will be forced to buy the plane in large numbers just to stay competitive with each other, as they did with the 747 some 50 years ago.

Fuel efficiency is 50% better than the best engines currently out there. The maintenance cost is 30% lower.

All Nippon Airways, one of Boeing’s largest customers, took delivery of the first 737 MAX after a three-year delay. The company expects to reach its maximum production rate of 37 planes a month shortly.

Boeing probably won’t become cash flow positive on the product until it has delivered 200-300 aircraft, probably sometime in 2023. After that, the economies of scale really kick in. The company is believed to have some $17-$23 billion in research and development tied up in the plane.

Boeing’s immensely profitable defense business still accounts for more than half of revenues. The 737 MAX will no doubt deliver a huge kicker for earnings. Its main competitor, Airbus, does have the minor problem in that its planes keep falling apart fully loaded with passengers.

If you can get (BA) at a good price, you’d be getting a best of breed company at a mongrel price.