Trade Update – Closing $BA Sept Put Spread for more than a double

by CC August 21, 2015 9:49 am • Commentary

Way back in early July we placed a bearish trade in Boeing ($BA) with the thought that currency headwinds and weakness in China meant that it was likely BA held its downtrend and made new multi month lows. Here was the original trade and rationale:

TRADE: BA ($144.50)  Buy to Open Sept 140 / 130 Put Spread for 2.20

-Buy to Open 1 Sept 140 Put for 3.40

-Sell to Open 1 Sept 130 Put at 1.20

Rationale:  This trade is not only targeting the earnings event, but also the company’s exposure to global growth, which I suspect will become a theme amongst investors if Chinese stocks are unable to stabilize.

The last 2 days have been pretty brutal for the stock and we’ll take that opportunity to close for a profit:

Update: Sold to close BA ($133) Sept 140 / 130 Put Spread at $5.20 for a $3 profit