Editor's note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods. If you don't have the resources, time or inclination to constantly monitor and manage your positions, leveraged and inverse ETFs are not for you.

Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in BA.

The Boeing Company (Ticker: BA) is approaching a critical test. The aerospace giant is scheduled to report Q2 earnings on July 30, and traders are watching closely for signs of either renewed lift—or continued turbulence.

After a rough start to the year marked by mounting safety concerns, production slowdowns, and negative cash flow, Boeing’s stock has staged a surprising rebound. Wall Street upgrades, strong aircraft demand, and progress on regulatory issues have pushed the stock up over 60% since bottoming out around $130 a share in April.

However, Boeing dropped in the immediate aftermath of the crash of an Air India 787-8 Dreamliner jet on June 12. The disaster put a renewed spotlight on Boeing, the manufacturer of the plane, according to CBS News.

Below is a daily chart of BA, as of June 12, 2025.

Source: StockCharts.com.

Candlestick charts display the high and low (the stick) and the open and close price (the body) of a security for a specific period. If the body is filled, it means the close was lower than the open. If the body is empty, it means the close was higher than the open.

The performance data quoted represents past performance. Past performance does not guarantee future results.

But with expectations now rising, so are the risks. Boeing must deliver more than optimism—it must show progress.

According to Nasdaq as of June 10, 2025, the consensus Wall Street Q2 estimate for Boeing is a loss of 85 cents a share, compared with a loss of $2.90 in the year-ago quarter.

Ahead of earnings, here’s a look at the bull and bear cases, and how traders might consider positioning with Direxion’s Single Stock Daily Leveraged & Inverse ETFs.

Bullish Catalysts: Can Boeing’s Momentum Hold?

While Boeing has faced immense scrutiny, recent developments have investors cautiously optimistic. From a major legal overhang being resolved to rising order activity at the Paris Air Show, bulls have found several reasons to believe a turnaround is taking shape. Here’s what they’re watching:

1. DOJ Resolution Lifts a Cloud: Boeing avoided a high-profile criminal trial by reaching a $1.1 billion agreement with the U.S. Department of Justice over the 737 MAX crashes. Fox Business reports that the deal includes compliance commitments and a fine—but critically, no admission of wrongdoing. With that cloud lifted, investors may feel more confident in the company’s operational focus going forward.

2. Wall Street Turns Bullish: A growing chorus of analysts sees Boeing as a top opportunity in aerospace. Bernstein called Boeing its “best idea” in the sector, while Investor’s Business Daily noted a “Trump trade rally” fueled by growing aircraft orders. Upgrades from Jefferies, BofA, and others have helped power the recent rebound.

3. Strong Demand at Paris Air Show: At the Paris Air Show, Boeing booked significant new orders from global carriers, including IAG and Qatar Airways. The company also resumed 737 MAX deliveries to China, a long-awaited milestone. These developments suggest real demand is materializing—and not just in forecasts.

Bearish Catalysts: Is the Risk Still Too High?

Despite the recent optimism, Boeing’s challenges remain significant. The company is still losing money, production caps remain in place, and its brand reputation has yet to fully recover. For traders on the bearish side, here are the key risks in focus:

1. Persistent Cash Flow Pressure: Boeing posted a negative $2.3 billion in free cash flow in Q1 and warned of continued operating losses. Unless Q2 shows meaningful progress, investors may lose patience. Without improvement, the company’s 2025 breakeven cash flow target could slip further out of reach.

2. Production and Quality Uncertainty: The FAA has capped 737 MAX output at 38 planes per month, citing persistent quality issues. Airways Magazine and others continue to report concerns about Spirit AeroSystems components and internal inspections. These risks make it difficult for Boeing to ramp up to meet demand—even when orders are strong.

3. Geopolitical Risk and China Exposure: Boeing’s long-term growth depends in part on the Chinese market, but geopolitical tensions still pose a threat. Recent coverage shows China is reopening to Boeing jets, but that trend could reverse quickly. Escalations in trade policy or diplomatic strain could directly impact deliveries and backlog stability.

4. High Expectations Could Backfire: The stock has rallied sharply on future optimism. But Boeing has posted seven straight years of annual losses, and Q2 must show clear operational improvement to justify the recent move. If the report underwhelms—or if guidance lacks clarity—momentum could quickly reverse.

Trade the Setup with Daily Leveraged ETFs

Whether you believe Boeing is taking off—or about to stall—Direxion’s ETFs allow tactical traders to express their views.

The Direxion Daily BA Bull 2X Shares (Ticker: BOEU) and Direxion Daily BA Bear 1X Shares (Ticker: BOED) seek daily investment results, before fees and expenses, of 200% and 100% of the inverse (or opposite), respectively, of the performance of the common shares of The Boeing Company (Ticker: BA).

With earnings due July 30 and the macro, regulatory, and operational stories all in motion, Boeing may be primed for more potential moves to trade.

*Definitions and Index Descriptions

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with BA and may increase the volatility of the Bull Fund.

Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with BA and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to BA is impacted by BA’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to BA at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to BA increases on days when BA is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with BA and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to BA is impacted by BA’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to BA at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to BA increases on days when BA is volatile near the close of the trading day.

The Boeing Company Investing Risk – BA faces risks associated with: risks associated with commercial airlines, including demand for commercial aircraft and related services and commercial airlines sales contract terms; adverse government regulations; regulatory compliance costs; supply chain and manufacturing disruptions; litigation and government inquires and investigations; changes in U.S. government defense spending or a priorities; among other risks.

Industrials Sector Risk — Stock prices of issuers in the industrials sector are affected by supply and demand both for their specific product or service and for industrials sector products in general.

Aerospace and Defense Industry Risk — The aerospace and defense industry can be significantly affected by government regulation and spending policies because companies involved in this industry rely, to a significant extent, on government demand for their products and services.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Concentration Risk, Market Risk, Non-Affiliation Risk, Security Volatility Risk and Cash Transaction Risk. Additionally, for the Direxion Daily BA Bear 1X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

ALPS Distributors, Inc.