“Buy the rumor…sell the headline news.”
Everyone is aware of the international grounding of Boeing (NYSE: BA)‘s 737 Max aircraft after two recent crashes.
The stock was hammered after the second crash. Most countries decided to park the plane pending an investigation.
However, the shares were sliding before the news. They came off a record high after a ridiculous 50% rally that lasted a little more than two months.
The stock stabilized and was trading less violently in the $370-$375 range this past March.
We played the bullish side of a BA credit spread primarily because it appeared the worst of the news was priced into the stock.
Watch my latest video on how we grabbed a max profit return of more then 20% on a spread that was 8% out of the money and only open for 21 days from headline news.
About The Author
Meet Jon Lewis, With over 20 years of real experience, teaching AND trading, Jon will help you learn to use options profitably and safely in portfolios of any size.
His advantage, and now yours, is using simple, overlooked spread options strategies which generate consistent income without significant risk.