Schwab Network (ex‑TD Ameritrade Network)

Options Corner: BA Sees Tight Correlation with SPX

In this Options Corner segment, lead market technician Rick Duquette examines Boeing (BA) stock, noting its unusually tight correlation with the S&P 500 and how that relationship can serve as a trading signal. Duquette points out that BA is trading in a descending channel bounded by white dashed lines, with recent highs at 5435 and a solidified support near 190, an old November gap. The weekly five‑day EMA sits around 195, while RSI has formed bullish divergence, breaking a downward‑sloping trend line, suggesting accumulating upward pressure. He highlights a volume profile concentration between $197 and $207 and a point of control near $215, indicating where price may consolidate. For the April 17 monthly expiration, Duquette proposes a short put vertical (strike 9185) with a $1 credit, offering a 4:1 reward‑to‑risk ratio and a breakeven around 189, aligning with the expected 6.7% move. If the BA‑S&P correlation weakens or the price breaches the channel’s upper boundary, traders could capitalize on the suggested put spread or adjust positions, making the technical cues critical for short‑term options strategies.