Recently, an ex-colleague of mine gave me a hot tip. Boeing is a really cheap stock! It fell from US$380 to US$120. He started selling put options on Boeing in 2019 after signing up for an investment course with a “guru”. Based on his guru’s advice, he started buying Boeing stock and trading the options. Here are his reasons for investing.
Boeing’s groundings are temporary. The travel industry will recover from COVID19.Boeing is financially stable.Even if Boeing comes close to insolvency, the government will bail it out.
I got curious and took a quick look. I rejected the company as out of my league of expertise. Let me explain why.
Point 1: The Disruption is Temporary.
For those who are unfamiliar, Boeing is a big deal in the aviation sector. The plane maker is part of a duopoly in the commercial aviation industry. If you wanted to buy planes, you