Buy Alert: November 2, 2012

| November 2, 2012

Buy Alert:  November 2, 2012

 

Trade Details

Buy Boeing (BA) December $72.50 Calls for $1.15 or better

 

 Why?

The October jobs report came out better than expected today, continuing the trend of solid job growth we’ve been seeing recently.  However, the market is pulling back on profit taking after yesterday’s big climb.  Several large stocks are down despite the good news on the jobs front.

One such company is Boeing (BA).

In BA’s recently released earnings report, the company beat analysts’ expectations for earnings per share and raised its earnings forecast.  Yet, the stock dropped on general concerns over the airline industry and the economy.

With today’s good jobs news, we should see investors returning to big industrial companies like Boeing.  More importantly, the stock just reached an important support level and is set to climb to the 50-day moving average and then the 200-moving average.

I expect a quick move back to those key moving averages.  However, we’re going to go with December calls this time around so we don’t bump up against time decay issues in November options.

 

 Recent Activity

Boeing

 

Category: OTW Buy Alerts

About the Author ()

Marcus Haber is the co-editor of Options Trading Research and boasts well over a decade of real-life options experience. Learning from some of the biggest names in the business, Marcus has served as an Options Strategist for a number of firms and was also appointed to the Options Advsiory Board with Pershing, a branch of the Bank of New York.
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