📉 Context & Confirmation
On July 29th, BA (Boeing) printed a textbook Bearish Engulfing pattern on the daily chart — right after its earnings release.
Here’s the checklist:
✅ Strong 15+ day uptrend leading into the signal
✅ RSI hit ~75, firmly in overbought territory
✅ New local high just before the reversal
✅ The engulfing candle opened above the prior close and fully engulfed the previous bullish candle
✅ Volume spiked well above average on the red candle — confirming institutional participation
🧠 What’s happening technically
BA gapped up on earnings but failed to hold the move. The next session — July 29 — opened above the previous candle’s close, then reversed sharply, closing near the lows and fully engulfing the prior bullish day.
This is a classic Bearish Engulfing structure and suggests short-term exhaustion in buying pressure.
🔍 What's next
This is a prime candidate for a Bear Call Spread using a 10-delta strike.
As of July 30 (today), the 10-delta CALLs for Aug 08, 2025 expiration sit near the 240–242.5 strikes — a comfortable zone above the recent highs.
I won’t be entering this setup just yet — I’m currently holding two active positions:
one in my 10-delta reversal strategy Bear Call Spread – PYPL,
and one in the weekly QQQ income strategy Bull Put Spread – Target Profit $500.
I stick to one trade per strategy at a time — discipline over everything.
But this BA setup is now officially on watch.
🎯 Tactical Plan
Look for a clean entry on the 15-minute chart, ideally during a weak bounce or retest into resistance.
10-delta or higher CALLs only — stay mechanical.
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Disclaimer
All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.