Million Dollar UOA in JETS ETF 2 Days Before Boeing’s Blunder

Million Dollar UOA in JETS ETF 2 Days Before Boeing’s Blunder

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Today, all eyes will be on shares of Boeing (BA), which over the weekend has quickly become the most talked-about ticker on Wall Street Bets. As of 5AM ET, the stock is already down -8.4% on news that during an Alaskan Airlines flight on Friday, one of the emergency exit doors on a Boeing 737 Max 9 blew off mid-flight while the commercial plane was 16,000 feet in air. Luckily, the incident occurred just minutes after the initial takeoff, and the flight landed safely with no serious injuries reported. Later, the door plug belonging to the plane was found in a backyard in Portland, Oregon. 

Only two airlines currently use the Boeing 737 Max 9 — Alaska Airlines and United. Both have paused flights using this model of aircraft pending further investigation. Alaska and United have both stated that they will work with customers as many flights and trips are rescheduled. As news of this extremely frightening incident spreads, this will no doubt have a serious short-term impact on Boeing stock, and likely on the stocks of related airlines. 

At the time of writing, 5AM ET, Boeing stock is already down more than 8% on the news. 

Prior to the incident, the plane (which was only weeks old) experienced three pressurization warnings between December 7th and January 4th, including one that occurred in flight. One day before the issue occurred, it was decided that the plane in question could not make any long flights over water so that it would be able to return “very quickly” if one of these warnings arose again.

Put it all together: Private information being spread to a large handful of people about a defective plane. A major stock market reaction. And the third piece: unusual options activity that took place just 48 hours before the event.

This UOA was bought in two purchases, back to back, with a total of 28,000 contracts bought in March $18 strike puts in the JETS ETF, which Boeing is the 15th largest member of. The total value: $1.88 million dollars. 

These puts will likely expand in value when the market opens up given the heavy selling pressure on the airline sector today.

Did someone know something was awry? Was this just a lucky guess or a trade based on a different thesis entirely? We will likely never know — and that’s okay. What’s important is that we followed the smart money, who are often trading on information that we as individual traders simply don’t have. 

Want unusual options activity alerts like these the moment we see them — complete with trade ideas, technical analysis, and specific entry & exit levels? Try Market Rebellion UOA today.

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