Boeing remains one of the world's duopoly companies (along with Airbus) in the commercial airline industry and is also a top 5 U.S. Defense contractor. The company has struggled greatly in recent years from a series of aircraft groundings and mismanagement which included 6 consecutive years of negative earnings per share. But under the new and capable leadership of CEO Kelly Ortberg for the past one and half years, Boeing is now inflecting back to profitability.
Key Bullish Catalysts are: (1) Production Ramp-Up: Following the FAA's lifting of production caps in late 2025, Boeing is ramping the 737 MAX toward a target of 47 jets per month by summer 2026. Additionally, 787 Dreamliner production is slated to reach 10 per month during 2026. (2) Financial Recovery: Analysts project 2026 as the first year of sustainably positive free cash flow (estimated in the low-single-digit billions) since the MAX crisis. Revenue is expected to reach approximately $96 billion with potential earnings of $2.34 to $3.00 per share. (3) Massive Backlog: Boeing holds a total backlog of over $636 billion, including firm orders for more than 5,900 commercial airplanes. In January 2026, Boeing outperformed Airbus in both deliveries (46) and net new orders (103). (4) Strategic Integration: The late-2025 acquisition of Spirit AeroSystems allows Boeing to bring critical fuselage manufacturing back in-house, aimed at ensuring tighter quality control and reducing supply chain friction. (5) Defense Growth: A projected increase in U.S. defense spending (potentially to $1.5 trillion) is expected to benefit Boeing’s Defense, Space & Security unit, which saw revenue rise to $6.9 billion in Q3 2025.
Boeing is included in Bank of America's US1 List for 2026. The average target price of Wall Street analysts covering Boeing is +16.3% above today's $234.24 stock purchase price. Significant upside depends on the successful certification of the 737 MAX 7 and MAX 10 variants in 2026, as well as flight test progress for the 777X.
As detailed below, a potential return-on-investment result is +1.4% absolute return (equivalent to +34.1% annualized return-on-investment for the next 15 days) if the stock is in-the-money and therefore assigned on the March 6th, 2026 options expiration date.
The buy/write transaction was as follows:
2/19/2026 Bought 100 shares of Boeing Co. stock @ $234.24 per share.
2/19/2026 Sold 1 Boeing March 6th, 2026 $225.00 Call option @ $12.36 per share. The Implied Volatility of this Call option was 34.4 when this position was established.
A possible overall performance result (including commissions) would be as follows:
Covered Call Cost Basis: $22,188.67
= ($234.24 - $12.36) * 100 shares + $.67 commission
Net Profit Components:
(a) Option Income: +$1,235.33
= ($12.36 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If BA stock is above the $225.00 strike price at the March 6th, 2026 expiration): -$924.00
= ($225.00 strike price - $234.24 stock purchase price) * 100 shares
Potential Total Net Profit: +$311.33
= (+$1,235.33 Call option income + $0.00 dividend income - $924.00 capital appreciation)
Potential Absolute Return-on-Investment: +1.4%
= +$311.33/$22,188.67
Potential Equivalent Annualized Return-on-Investment: +34.1%
= (+$311.33/$22,188.67) * (365/15 days)
