Boeing Company (BA)

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Boeing Stock Dips After Delaying 787 Dreamliner Deliveries
By: Schaeffer's Investment Research | May 28, 2021

• The company has to address previously disclosed production issues

• Year-over-year, though, the blue-chip stock is up over 64%

The shares of blue-chip name Boeing Co (NYSE:BA) are down 1.2% $247.74 at last check, after the Washington Post reported that the airplane manufacturer delayed the delivery of 787 Dreamliners, due to requests from the Federal Aviation Administration (FAA) for more information regarding the company's plans to address previously disclosed production problems.

On the charts, Boeing stock just reached March 15, annual high of $278.50 -- its highest level since the beginning of the pandemic. And while the security has cooled off from that peak, shares started to pivot higher last week. with newfound support from the 20-day moving average. Despite today's negative price action, BA is up over 64% year-over-year.

Analysts are mostly bullish towards Boeing stock, with nine of the 16 in question sporting a "strong buy" rating, while the remaining seven called it a tepid "hold." Plus, the equity's 12-month consensus target price of $260.65 is a 5.6% premium to its current perch.

The options pits echo that optimism, with a strong appetite for calls. This is per the BA's 50-day call/put volume ratio of 2.95 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands in the 83rd percentile of its annual range. This indicates long calls are being picked up at a quicker-than-usual pace.

These options traders are in luck, as BA premiums are currently affordable. The stock's Schaeffer's Volatility Index (SVI) of 31% stands higher than only 2% of readings from the past year. This means options players are currently pricing in lower-than-usual volatility expectations -- a boon for premium buyers.

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