Covered Calls: Boeing Co (BA)
Most people think that Boeing Co (NYSE:BA) is just an airplane company that makes planes for tourists to take vacations. That’s not at all true. 64% of Boeing’s Defense, Space & Security division’s revenues come from the DoD. You also know plenty of those cool military planes and helicopters: the F/A-18 Super Hornet, the F-15, Chinook and Apache helicopters, and the V-22 Osprey.
And that’s just a part of what Boeing does. When you combine its military business with its space and passenger airplane business, you have a nicely diversified company.
BA stock closed Wednesday at $178.40, and the higher absolute price offers nice higher absolute premiums, even if the percent return isn’t super-attractive for shorter-term covered calls.
The 18 Aug $180 covered calls can be sold for $6.65. That’s 3.67%, and if called away, add in another $1.60 in capital gains. One contract netting $785 is just fine by me.