Earnings season is well underway, and aerospace giant Boeing (NYSE:BA) is expected to report its fourth-quarter results before tomorrow's opening bell. Below, we will take a look into how BA has performed on the charts of late, and what the options market is pricing in for the stock's post-earnings action.
As an overview, Boeing stock has outperformed on the charts this past year, more than doubling in value. In fact, touched a record high of $352.23, on Jan. 17. At last check, BA was slightly lower, down 1% to trade at $337.26,
Looking at its earnings history, BA has ended higher the day after earnings in five of the past eight quarters. Further, the shares have averaged a post-event swing of 4.4% in either direction in the session after reporting, looking back two years. This time around, the options market is pricing in a smaller-than-usual 7.1% move for Wednesday's trading, per at-the-money implied volatility (IV) data.
In the options pits, sentiment has been leaning bullish in recent weeks. Data at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), shows Boeing stock's 10-day call/put volume ratio of 1.69 in the 96th percentile of its annual range. This suggests calls have been bought over puts at a faster-than-usual clip during the past two weeks.
What's more, premium buyers haveconsistently been rewarded over the past year, per BA's Schaeffer's Volatility Scorecard (SVS) of 94. This means the shares have tended to make bigger-than-anticipated moves in the previous 12 months, relative to what the options market had priced in.