Boeing Company (BA)

[Porgie Tirebiter]

Because they are expensive. When something is expensive I want to sell it.

My current BA position is a 325 Put/340 Call short strangle for this Friday.

I don't know short term share price direction, but I do know which way time moves and that position has .67 combined theta - it loses roughly $67 in value per day.

My hedge with the call is the shares I own. I cap my max profit on that particular trade at 120% annualized on a trade lasting two weeks.

The hedge with the put is my willingness to own more shares with a basis in the low $320s. I cap my max profit on that particular trade at 22% annualized on a trade lasting one week.

The reason the call side looks so much 'richer' is I have a potential $10 worth of alpha the put side doesn't get.