Boeing stock, BA stock, BA stock price, airplane stocks

Boeing will have to pay $200 million to settle SEC charges pertaining to the 737 MAX crashes

Boeing Co (NYSE:BA) has run into more problems with its 737 MAX jets, which were involved in two fatal crashes in October 2018 and March 2019. Late Thursday, it was reported that the company will have to pay over $200 million to settle charges made by the U.S. Securities and Exchange Commission (SEC) over misleading investors on the safety risks involved with its 737 MAX jets following the crashes. Former CEO Dennis Muilenburg, meanwhile, will have to pay $1 million in the settlement. 

The stock has shed 2.4% at trade at $135.43 in response, set to hit a more than two-month low at the open. The security has been on a jag lower since mid-August, when it ran into pressure near the $170-$175 region. This is coincidentally home to BA’s pre-bear gap lows from March 2022 and November 2020. The 180-day moving average also swooped in as a ceiling, sending the shares to a 31% year-to-date deficit. 

We covered Boeing stock about a month back, warning investors to use caution before buying into the stock’s early August rally. One thing we noted was BA’s 14-day Relative Strength Index (RSI), which was sitting at an “overbought” 72. In little over a month the equity plummeted into “oversold” territory, as its RSI now sits at an extremely low 26. 

Short-term bears have hopped on Boeing stock’s plummet. The security’s Schaeffer’s put/call open interest ratio (SOIR) of 1.11 stands higher than 99% of readings from the past year. In other words, these traders have rarely been more put-biased. 

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