Boeing Options Traders Bet Travel Is The Next Bull Market

Author: Melanie Schaffer | May 10, 2021 02:20pm

Boeing Co (NYSE:BA) opened higher Monday following rotation from tech stocks into travel.

On Monday afternoon, airline heavy SPDR S&P Transportation ETF (NYSE:XTN) was trading up 1% while technology ETF PowerShares QQQ Trust (NASDAQ:QQQ) was trading down 1.5%.

Although rotation in the market is keeping S&P 500 near all-time highs, traders may find it difficult to find bullish stocks. It appears institutions may believe re-opening stocks are the next bull market and option traders bet $543,936 the price of Boeing is going higher.

See Also: These 3 Airlines Look Bullish Going Into The Week: How To Play them

The Boeing Option Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

• At 9:32 a.m., Monday a trader executed a call sweep, near the ask, of 413 Boeing options with a $240 strike price expiring on May 14. The trade represented a $144,137 bullish bet for which the trader paid $3.49 per option contract.
• At 9:32 a.m., a trader executed a call sweep, near the ask, of 392 Boeing options with a $240 strike price expiring on May 14. The trade represented a $146,608 bullish bet for which the trader paid $3.74 per option contract.
• At 10:00 a.m., a trader executed a call sweep, near the ask, of 203 Boeing options with a $240 strike price expiring on May 14. The trade represented a $71,456 bullish bet for which the trader paid $3.52 per option contract.
• At 11:21 a.m., a trader executed a call sweep, near the ask, of 223 Boeing options with a $240 strike price expiring on May 14. The trade represented a $59,095 bullish bet for which the trader paid $2.65 per option contract.
• At 12:03 p.m., a trader executed a call sweep, near the ask, of 292 Boeing options with a $240 strike price expiring on May 21. The trade represented a $122,640 bullish bet for which the trader paid $4.20 per option contract.

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

BA Price Action: Shares of Boeing were trading up 0.2% to $235.97.

Photo by Steve Lynes via Wikimedia.

Posted In: BA QQQ XTN