Boeing Company (BA)

[Porgie Tirebiter]

BA is north of $300 in spite of the current stupidity in foreign trade policy. Boeing, like farmers, is a major part of the plus side of the trade imbalance equation for the US. Net exporters stand to be hurt the most.

Beginning in early 2017 BA, along with the market in general, began experiencing an increase in realized volatility to the upside. As is usual, upside volatility sees a crash in implied volatility. Subsequently, 2017 and most of 2018 saw historic lows in implied volatility across the whole market. When realized downside volatility inevitably comes along (like recently) implied volatility generally overshoots it.

Implied volatility is generally way too low (too cheap) when realized volatility is to the high side, and is generally way too high (too expensive) when realized volatility is towards the down side.

Since stocks tend to revert to the mean, technicians try to use their tools to predict where share price is going. Volatility, on the other hand, always reverts to the mean. In simple terms: Stock traders are gamblers. Volatility traders are the casino.

Invest in stocks for yield and growth. Trade volatility.