Boeing stock rallied Thursday after President Donald Trump’s trade deal plan with the U.K. emerged. The major aerospace and defense firm surged higher as the U.K. will now be buying $10 billion worth of planes from Boeing, according to President Trump. I want to use options to own Boeing as the outcome of this first trade deal with the UK is bullish for the American aircraft manufacturer. BA mountain 2015-12-31 Boeing since 2016 While the UK deal is good news for BA, this essential company was already recovering with a current $435 billion backlog of commercial aerospace orders (10-year production run). Still, the stock has remained far off its pre-Covid highs in the $300s. The $10 billion order from the UK for Boeing (first of many new orders hopefully) was detailed this morning as British Airways unveiled plans to buy 32 Boeing 787-10 long-haul aircraft from Boeing. Long-delayed next Air Force One jets from Boeing might now be delivered by 2027, in time for President Trump to use them, according to a top Air Force official. Still years behind the original delivery date of 2022, but President Trump is smiling as it’s one to two years earlier than Boeing had most recently predicted. Boeing is an Essential 40 ETF (symbol :ESN) portfolio holding as it is a company I believe to be critical and vital to the U.S. economy. Think Peter Lynch 2.0: ‘buy what you need’ which is a step further than the legendary investor’s ‘buy what you know’ theme. BA is above both its 50- and 200-day moving averages and technically can run back to its late 2023 price up above $250 The Trade (Risk Reversal) Sold the 6/20/2025 $185 puts for $4.75 Bought the 6/20/2025 $200 calls for $5.75 This spread will cost an investor $1.00 or $100 per one spread BA was roughly trading at $193 when this was established An investor has to be willing to own BA at $185 in the event those puts get assigned. Therefore, the downside risk is unlimited if put to a long position when owning Boeing. The upside maximum is unlimited above $201 ($200 is the strike price of the call option plus the $1 it cost to put on the spread) DISCLOSURES: Long BA, own this spread too All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
