Options Market Statistics: Boeing Shares Fall as MAX 9 Grounding Continues, Options Pop
News Highlights
$Tesla (TSLA.US)$ shares rose by 0.47%, closing at $219.91. Its options trading volume is 1.90 million. Call contracts account for 52.5% of the whole trading volume. The most traded calls are contracts of $220 strike price that expire on January 19th. The total volume reaches 99,592 with an open interest of 33,481. The most traded puts are contracts of a $210 strike price that expires on January 19th; the volume is 120,613 contracts with an open interest of 37,845.
$Spirit Airlines (SAVE.US)$ shares fell by 47.09%, closing at $7.92. Its options trading volume is 0.59 million. Call contracts account for 51.4% of the whole trading volume. The most traded calls are contracts of $25 strike price that expire on January 19th. The total volume reaches 37,632 with an open interest of 74,934. The most traded puts are contracts of a $7.5 strike price that expires on February 16th; the volume is 34,742 contracts with an open interest of 34,449.
Spirit Airlines faces tough choices about its future including looking for another buyer and finding other ways to shore up its finances after a federal judge on Tuesday blocked its $3.8 billion merger deal with JetBlue Airways, industry experts said.
The ultra low-cost carrier has been struggling to return to sustainable profitability amid rising operating costs and persistent supply-chain problems. That has raised concerns about the company's ability to repay its debt that is due to mature next year.
The airline this month completed a series of sale and leaseback transactions covering dozens of planes in a bid to repay about $465 million of debt on those jets.
But with a recovery in earnings not in sight, some analysts said the company might consider a bankruptcy filing to clean up its balance sheet and reorganize into a financially stronger airline.
$Boeing (BA.US)$ shares slided by 7.89%, closing at $200.52. Its options trading volume is 0.58 million. Call contracts account for 43.7% of the whole trading volume.The most traded calls are contracts of $210 strike price that expire on January 19th. The total volume reaches 18,445 with an open interest of 4,052. The most traded puts are contracts of a $200 strike price that expires on January 19th; the volume is 43,298 contracts with an open interest of 15,724.
A scathing report from Wall Street on Tuesday cast doubt on Boeing's ability to pass a new federal safety audit, sending its stock sinking sharply. Later Tuesday, Boeing announced an independent adviser who will lead a review of the company's quality control.
“Given Boeing’s recent track record, and greater incentive for the FAA to find problems, we think the odds of a clean audit are low,” the analysts said. “The FAA's audit is limited to Max 9 for now, but it's feasible that findings could expand the scope to other Max models sharing common parts.”
The analysts believe the investigation increases significantly the risk that Boeing takes a hit to its production and deliveries, and they downgraded the stock to “equal weight,” down from “overweight,” the equivalent of a “buy” rating.
Unusual Stock Options Activity
Some notable put activity is being seen in $Advanced Micro Devices (AMD.US)$ , which is primarily being driven by activity on the 19-Jan-2024 put. Volume on this contract is 27,681 versus open interest of 146.
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Daily Active Index & Sector ETF Options
Source: Barchart, Unusual Whales, CNBC
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