3 ms·

Thoughts on Boeing?

• adventured 7y ago
  If you can tell me how much money the government is going to plow into them and at what total cost, I'd take a stab at appraising their situation (on whether it's a potential buy at some price). It has certainly been demolished now. A friend of mine that I've been exchanging emails about the market with on a daily basis for 20 years - we trade short calls back & forth when something looks interesting (I almost never short stocks; and very rarely use puts; so this is merely a market game between us). I slapped a short call on Boeing at $371, with a cover below $200. That was premised on it being ridiculous that they had held up so well for so long, despite the beating on the 737 Max. At that point I had no idea Covid was coming. So I thought maybe it was worth $150 or $175 with the Max mess (assuming some resolution there eventually). What is it worth now? Shit, who knows. Zero without a bailout is my guess, they're getting tag teamed like the oil market did. So what will the bailout look like. I do believe the government will bail them out, I think that's obvious; so next, then, is what will that look like, how onerous will it be.
• raincom 7y ago
  I will wait until it gets a bailout, and how much the govt gets in preferential stock. Also watch out for how Airbus fares. Even Airbus tanked another 20 percent yesterday.