EADSY - Paris Air Show brings tactical options trades in Boeing GE: Goldman Sachs

2023-06-14 17:50:45 ET

Goldman Sachs said next week’s International Paris Air Show is an opportunity for tactical trades in options.

The biennial exhibition returns after being canceled two years ago because of pandemic uncertainties. It typically coincides with announcements of major orders for new planes made by companies such as Airbus ( OTCPK:EADSY ) ( OTCPK:EADSF ), Boeing ( NYSE: BA ) and Embraer ( ERJ ).

“With recent datapoints suggesting continued strength in commercial, recovery in international/long-haul travel and improvement in supply chain/labor issues, our analysts expect strong order activity for aircraft, engine and parts manufacturers at the event,” Sesha Pani, analyst at Goldman Sachs, said in a June 14 report.

The bank recommends buying June 30 weekly calls in General Electric ( NYSE: GE ) with a strike price of $108, recently offered at $1.61 a contract.

It also recommends buying June 30 weekly calls in Boeing ( BA ) with a strike price of $222.50, recently offered at $4.95 a contract.

Finally, Goldman Sachs advises buying July calls in Spirit AeroSystems ( NYSE: SPR ) with a strike price of $32, recently offered at $1.43 a contract.

More about commercial planes

• Airbus raises 20-year forecast for airplane deliveries by 3.4%
• Boeing’s deliveries of commercial jets rise 43% in May

For further details see: