Boeing Surges 3.23% on $36 Billion Korean Air Order: A Game Changer for Aerospace Giants?

Summary
• Boeing (BA) rockets 3.23% to $234.19, hitting a 52-week high of $234.69
• Korean Air’s $36 billion plane order fuels optimism amid FAA production cap negotiations
• Direxion Daily BA Bull 2X Shares (BOEU) surges 6.6% as leveraged ETFs capitalize on momentum
• Intraday volume hits 5.6 million shares, signaling robust institutional participation

Boeing’s shares are surging on the back of a historic $36 billion order from Korean Air, a deal that could redefine the aerospace giant’s recovery trajectory. With the stock trading near its 52-week high and technical indicators flashing bullish signals, investors are scrambling to position for a potential breakout. The Korean Air deal, coupled with FAA production cap discussions, has created a perfect storm of optimism in a sector already primed for growth.

Korean Air’s $36 Billion Order Ignites Boeing’s Bull Run
Boeing’s 3.23% intraday surge is directly tied to its landmark agreement with Korean Air, which has ordered 103 aircraft—including 20 777-9s, 25 787-10s, and 50 737-10s—to modernize its fleet. This deal, valued at $36 billion, not only bolsters Boeing’s backlog but also signals renewed confidence in its production capabilities amid ongoing FAA scrutiny. Korean Air’s CEO emphasized the strategic importance of the order for its post-merger competitiveness, while analysts highlight the potential for Boeing to ramp up production once the FAA’s tabletop exercises conclude by late September. The order’s timing, coinciding with a 13% rally in Boeing’s shares over the past quarter, has amplified market enthusiasm.

Aerospace Sector Rally: Boeing Outpaces Sector Leader Lockheed Martin
While Boeing’s 3.23% gain dwarfs the 1.74% rise in Lockheed Martin (LMT), the broader Aerospace & Defense sector remains in a bullish phase. The sector’s 31.1% annual return aligns with Boeing’s 39.86% three-year total return, underscoring the industry’s resilience. However, Boeing’s recent momentum is uniquely tied to its order backlog and production ramp-up potential, whereas LMT’s growth is more insulated from regulatory bottlenecks. Investors are now watching whether Boeing’s gains will spill over into other aerospace names as the sector navigates a post-pandemic demand surge.

Capitalizing on Boeing’s Bull Run: ETFs and Options Playbook
• MACD: 1.36 (bullish divergence from signal line 2.19)
• RSI: 52.64 (neutral, approaching overbought territory)
• Bollinger Bands: Price at $234.19 (near upper band $235.62)
• 200-day MA: $185.73 (far below current price)
• Direxion Daily BA Bull 2X Shares (BOEU): 2X leveraged ETF surging 6.6%, ideal for aggressive bullish bets

Boeing’s price action suggests a short-term breakout above the Bollinger Upper Band and a potential test of the 52-week high of $242.69. The 200-day MA at $185.73 remains a critical support level, while the 30-day support/resistance range of $224.75–$225.05 offers a near-term floor. For leveraged exposure, BOEU amplifies Boeing’s momentum, but its 2X leverage demands caution in volatile conditions.

Top Options Picks:
• BA20250905C235 (Call, $235 strike, 2025-09-05):
- IV: 27.92% (moderate)
- Leverage Ratio: 55.09%
- Delta: 0.489 (moderate sensitivity)
- Theta: -0.635 (high time decay)
- Gamma: 0.0351 (high sensitivity to price swings)
- Turnover: 470,475 (liquid)
- Payoff at 5% upside (ST = $245.89): $10.89 per contract
- Why it stands out: High gamma and leverage ratio position it to capitalize on a breakout above $235, with liquid turnover ensuring ease of entry.
• BA20250905C240 (Call, $240 strike, 2025-09-05):
- IV: 27.48% (moderate)
- Leverage Ratio: 103.59%
- Delta: 0.3195 (moderate sensitivity)
- Theta: -0.4637 (high time decay)
- Gamma: 0.031996 (high sensitivity)
- Turnover: 199,588 (liquid)
- Payoff at 5% upside (ST = $245.89): $5.89 per contract
- Why it stands out: Aggressive leverage ratio and high gamma make it ideal for a continuation of Boeing’s rally, with moderate delta balancing risk.

Hook: Aggressive bulls should target a breakout above $235 with BA20250905C235, while BA20250905C240 offers high-leverage exposure for a sustained move toward $245.

Backtest The Boeing Stock Performance
After an intraday surge of at least 3%, British Airways (BA) has historically shown positive short-to-medium-term gains. The backtest data reveals favorable win rates and returns over various time frames:1. 3-Day Win Rate and Return: In 52.07% of cases, BA has risen further within 3 days of the initial surge, with an average return of 0.21% in these periods.2. 10-Day Win Rate and Return: The win rate remains high at 52.07% over 10 days, with an average return of 0.71%.3. 30-Day Win Rate and Return: BA continues to perform well, with a win rate of 53.72% and an average return of 2.26% over 30 days.4. Maximum Return: The maximum return observed following the surge is 3.38%, which occurred on day 56 after the initial surge.These results suggest that investors may find opportunities in BA following a significant intraday surge, with the potential for further gains in the following days. However, it's important to note that past performance is not always indicative of future results, and investors should consider other factors and market conditions before making investment decisions.

Boeing’s Bull Case: Time to Ride the Korean Airwave
Boeing’s 3.23% surge is a testament to the Korean Air deal’s transformative potential, but sustainability hinges on clearing the $235.62 Bollinger Upper Band and the 52-week high of $242.69. The 200-day MA at $185.73 remains a critical support, while the sector leader Lockheed Martin (LMT) up 1.74% offers a benchmark for broader aerospace sentiment. Investors should prioritize BOEU for leveraged exposure and the BA20250905C235 call for a breakout play. Watch for a follow-through above $235—failure to hold this level could trigger a retest of the 30-day support at $224.75. Action now: Buy BA20250905C235 into a breakout above $235 or short-term bullish ETF exposure via BOEU.