BA TRADE LOGICTook a $BA $150 P position before the market closed today and making a note of why I ultimately made the trade.
1. Earnings catalyst (obviously).
2. Been trading with a downward channel but broke the channel even more to the downside.
3. After breaking the downtrend $BA entered a gap made back in November 2020 from $172ish to $158/9ish (blue lines).
4. If I read my research correctly $BA hasn't turned a profit on earning in like 3 or 4 quarters and will probably miss again. With the market acting the way it is I think it will sell off after earning regardless of good or bad news.
My price targets are the green lines.
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Not financial advice.