Boeing's CFO warned of negative free cash flow in the second quarter
Boeing Co (NYSE:BA) stock is up 0.6% to trade at $173.15 this morning, looking to bounce back from yesterday's 7.6% drop despite a dire warning. CFO Brian West said that free cash flow is likely to be negative in the second quarter, as troubles from multiple manufacturing mishaps persist.
Prior to yesterday's gap, BA was rallying headfirst into its declining 80-day moving average. The equity is pacing for a nearly 7% loss this week, and it sits nearly 34% lower in 2024.
Analyst sentiment doesn't match price action, either. Of the 22 covering brokerages, 15 still rate BA a "buy" or better. This leaves the stock vulnerable to a round of bear notes.
Options bears are taking their cues. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Boeing stock's 50-day put/call volume ratio of 1.49 ranks higher than 980% of readings from the past 12 months. This means options traders' have favored long puts over the last 10 weeks. Echoing this, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.60 ranks in the low 2nd percentile of readings from the last 12 months.
It's also worth noting the stock's Schaeffer's Volatility Scorecard (SVS) stands at an 99 out of 100. This means BA exceeded option traders' volatility expectations during the last 12 months.