BA is bearish in the short term, with a megaphone top pattern suggesting a move down to support at 207.

Boeing. Tons and tons of selling all the way from the top of the bowlinger just straight down to the bottom of it past the point of control. Uh these are the types of moves I look for in stocks when we we see this large move to the upside, we see a move to the downside, and we're going to get a bounce.

We've blown past the pivot. There's potential here for a bullish play.

We'll go through uh BA here and we'll we'll take a look at Boeing because we looked at the chart before and I showed you how uh I thought it was at the bottom of its bowlinger band.

Hang on one second. I showed you uh the the fact that I thought it was on the top at the bottom of its channel.

This is something that Mumu is charting. Mumu is a cool platform. It's got some really awesome things. So, you can see that it is automatically charting this on here. I did not put this on.

So, we've got earnings showing and then there's this little red arrow and and I can just click on this and it says megaphone top. So, it started August 24th.

And then there's this little red arrow and and I can just click on this and it says megaphone top. The pattern is bearish, probability is 50%, the support is at 207 and the resistance is at 214.

So, this is a bearish pattern and uh and it's showing that we could hit support. I mean this just started when yesterday I guess this little indicator came out. Um and support showing at 207.

So take it as you will. Like is this going to continue down?

Let's do a little trade. Let's do a little modeling of trade that could could make some money on Boeing. So we're up today. We're going to do the exact same thing. This is going to be a a potentially bearish trade around that 207.

So I can get that uh for $110. I can buy a 207 or I can sell rather. I can collect $111 by selling the 3-day to expiration uh uh 20750 put. Well, if I was to buy that same put a week out, uh this is a calendar spread.

We're looking at what happens here. This is a 203 to 212 break even. I have a defined max loss. I have positive theta on this trade and uh I have a probability of profit of making of 50%.

This is what these are ideal types of trades because if it does drop down to that 207 mark, this trade, although it costs $144, could make a profit of $170 over the next 3 days.

This could double the amount that I am willing to risk towards this trade. Now, again, I showed you how I might adjust these. So, if I wanted to have a more bearish tilt, all I would do is I would spend a little bit more money on this. I would sell the 207. I'd buy the 210.

This would give me unlimited uh profit, mostly unlimited profit to the downside if BA just continued to drop over the next couple of days. Slightly positive theta, which is good.

We can see that here. Uh we've got theta rating of $15. We've got but it's short delta. Uh max loss is 243, max profit is 215.

Now, usually what I do is I start to just add different different types of things on here. So, if say I buy the the 210, what if I was to also buy the 205 and then if I was to go back to the simulator here and I was going to increase the number of contracts.

And this is where I just love to play and see how complex I can make things. So, this has a max uh max loss of 333, a max profit of uh $372. It's got a 50% probability of profit.

It's got positive theta decay. has the peak around the 307.

And really what's happening is um I know I'll get some of my money back unless the stock just automatically something happens and the stock just goes screaming upwards which could I mean we could see a we could see a rate uh rate hike announcement tomorrow which would be a bullish signal for stocks and that could just like shoot the market up. Well, we may not see that at all tomorrow.

So BA, if I was looking for a bearish position, I would probably be setting up something like this where I have this slightly uh bearish position leading into the weekend. The nice thing about something like this is it's easily scalable.

So although I'm only showing you this is $300, I could do five contracts of this. This would be $1,500. Then it would have bigger theta decay uh bigger potential and I could and I could uh scale it easily.

That's why I show such small trades all the time.

We looked at a bearish trade idea on Boeing.