Fresh Options from Boeing: Exploring Potential Strategies for Investors
New April 2025 Options Available to Investors in Boeing Co.
Investors in Boeing Co. (Symbol: BA) have new options at their disposal today, with contracts expiring in April 2025. Time value plays a crucial role in determining option prices; with 185 days remaining until expiration, sellers of puts or calls may benefit from higher premiums compared to contracts with nearer expiration dates. Stock Options Channel has examined the BA options chain and highlighted one noteworthy put and one call contract.
Potential Opportunity with the $110 Put Contract
The put contract at the $110.00 strike price currently has a bid of $1.91. If an investor sells this put option, they are agreeing to buy the stock at $110.00 while collecting the premium. This leads to an effective cost basis of $108.09 per share (before broker commissions). For investors looking to acquire BA shares, this can be an attractive alternative to buying at the current market price of $146.87/share.
As the $110.00 strike price is about 25% below the current stock price, there’s a possibility that the put option may expire worthless. Current analysis indicates an 88% chance of this happening. Stock Options Channel will monitor these odds over time and provide updates on their contract detail page. If the contract does expire worthless, the premium earned translates to a 1.74% return on the cash commitment, which annualizes to 3.43% — a metric we refer to as the YieldBoost.
Examining the Call Option at $155
On the call side, a contract at the $155.00 strike price has a current bid of $11.50. An investor buying BA stock at $146.87/share and selling this call as a “covered call” is locking in a commitment to sell the stock at $155.00. Given the premium collected, this strategy could yield a total return of 13.37% at expiration in April 2025 (before broker commissions). However, should BA shares dramatically increase, some potential profits might be left unrealized. Thus, reviewing both historical price trends and the company’s fundamentals is essential.
The accompanying chart illustrates Boeing’s trailing twelve-month trading history, highlighting the $155.00 strike price in red:
The $155.00 strike price is about 6% above the current trading price, indicating a possibility that the covered call may expire worthless. In such a case, the investor retains both their shares and the premium. Analysis shows a 48% chance of this occurrence. Stock Options Channel will continue to track and report on these probabilities, including the historical performance of the option contract. If the covered call expires worthless, the premium adds a 7.83% extra return for the investor, equivalent to 15.45% annualized, which we denote as the YieldBoost.
Volatility Insights
The implied volatility for the put contract stands at 44%, while the call contract’s implied volatility is 38%. In contrast, we have calculated the actual trailing twelve-month volatility—using closing prices from the last 250 trading days along with today’s price at $146.87—to be 34%. For further options contract ideas worth exploring, visit StockOptionsChannel.com.
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Also See:
- BDCs Hedge Funds Are Buying
- Progressive Average Annual Return
- CATX Options Chain
The views and opinions expressed herein represent those of the author and do not necessarily reflect the views of Nasdaq, Inc.
