Regardless of Where Boeing Heads Next, Here's How to Score Big on It

The fall of aviation icon Boeing Co. (NYSE: BA) has been one of the most shocking market stories of the past year.

Once the biggest name in the industry, Boeing took hit after hit throughout 2019.

Let's go back to the beginning.

In 2018, Boeing was promising it could ramp up production of its 737 Max models to meet the influx in demand.

Just five days later, the world witnessed the first 737 Max crash.

And five months after that, a second crash rocked the world and the company.

This was followed by a laundry list of misfortune for Boeing.

What was supposed to be the company's flagship model turned into its worst nightmare. The plane has been grounded worldwide since March 2019.

Cancellations have outpaced deliveries following the aircraft's grounding. And its overall shares have plummeted about 25% following the second deadly crash.

Meanwhile, Boeing's main competitor, Airbus SE (OTCMKTS: EADSY), has been outpacing it in the production of the A320neo, a roughly equivalent aircraft.

Boeing's recent earnings report posted its first annual loss in more than two decades. According to Barron's, core earnings per share fell from $10.85 to $6.50 for 2020, while cash flow was cut from an inflow of $9.8 billion to an outflow of $5.6 billion.

This earnings report has opened the door to a whirlwind of different questions - but the most important one for traders is where this stock will head next.

It's a great question, but it doesn't really matter. Let me explain why...

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Boeing's More Resistant Than You Think

Here's the thing: No one truly knows where this stock - or any stock, for that matter - is headed next. Every technical indicator out there will give you a different answer.

Boeing is a "noise-resistant" stock. What I mean by this is it doesn't have major swings, despite ongoing negative press surrounding it.

Now, before you go to pull out your 12-month charts of Boeing - I know the stock has faced some dips - let me clarify something. Despite facing what the CEO called the biggest crisis in 100 years, the stock hasn't fallen below $300 the entire time.

In fact, the stock doesn't move much, and it has remained in the $300-$380 range for about a year.

So, while many have predicted that Boeing will continue to go lower and lower, I have to disagree. This stock is one that holds at $300, and I don't see that changing anytime soon.

Now, let's take a look at how we can use this to our advantage...

How to Play Boeing No Matter Where It Heads Next

With that said, when considering adding this to your portfolio, I would check out the relative strength index (RSI) first. In case you've never heard of this powerful technical indicator, here's a short breakdown: RSI is a technical indicator that compares recent gains to recent losses to find out if the stock is either oversold or overbought. RSI ranges from 0 to 100.

The oversold zone is typically 0 to 30, which is where the stock tends to be considered undervalued.

The overbought zone is generally 70 to 100, which is where the stock tends to be considered too pricey or overvalued. By looking at this number, you can usually gauge the right time to buy or sell a stock.

For instance, here's the RSI chart for BA:

As you can see, every time BA hits the RSI of 70, it gets sold. And when it's oversold and hits 30, it immediately gets purchased.

This confirms that RSI can help reveal patterns in this stock, allowing us to make the most educated trading decision.

But there's one more step you can take to ensure you're putting your money into a reliable stock. It's a type of trading that allows you to score big regardless of which way Boeing heads next.

It's the same strategy that helped me turn a small stake into $5 million in just under two years.

Of course, I'm talking about options.

Now, options give you leverage, risk control, and the opportunity to make some massive profits. And if you choose the correct strategy, they also give you the opportunity to make money on a stock no matter what it does next.

And thanks to Boeing's consistent price moves, there are two strategies that could set you up to score on this aviation giant.

First, you could sell the rally and buy the dip, which is referred to as an Iron Condor.

An Iron Condor is a combination of two vertical spreads - a bear call spread and a bull put spread. It comes with four different options contracts, each with the same expiration date and different strike prices.

A trader would sell an out-of-the-money call and an out-of-the-money put, while also buying a further out-of-the-money call and a further out-of-the-money put.

The Iron Condor play offers you an opportunity for a large profit with low risk.

The second strategy is a credit put spread...

A credit put spread is made up of one short put with a higher strike price and one long put with a lower strike price. Both puts have the same expiration date. This setup limits your profit but also allows you to limit your risk - and sets you up to cash in without a big move from the stock.

With these two options strategies, you can play Boeing with confidence, no matter where it heads next.

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While any style of trading comes with risk, my trading plan helps manage that risk. And in a market fueled by fear and uncertainty, it's important to be mindful of your risk while also building the future you deserve.

And at The 1450 Club, I can help you do just that. Click here to get started now...

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