Boeing found a software glitch in the 737 Max that affects automated vertical navigation after a missed approach. The same plane that was grounded for nearly two years because its software thought nose-diving was a feature now has another software problem. Different problem. Same plane. Same company.
The issue hits automated approach functions. For those keeping score at home, this is the aircraft where Boeing already proved it could turn pilots into passengers. Now they've added a new wrinkle. Miss your landing and the computer might forget how to count altitude on the next try. Nothing builds confidence like discovering your fly-by-wire system needs a moment to collect itself after a go-around.
Retail traders saw this news and immediately checked their BA calls. They calculated the dip. They bought the dip. They convinced themselves this was priced in because the first two crashes were priced in, so clearly a third software issue is just market noise. These are the same people who think technical analysis works because they watched a YouTube video about Fibonacci retracements.
Boeing will fix this with a software update. They will tell the FAA the update is critical. The FAA will agree. Airlines will install the patch between flights. Passengers will board without knowing any of this happened. The plane will take off. The plane will land. Everyone will survive. The stock will trade sideways. And some guy in Wisconsin will still be holding his $180 calls from 2021, waiting for the turnaround, checking his Robinhood app every morning like it's a lottery ticket he forgot to scratch.
The Max remains the best-selling plane Boeing never wanted to ground twice but probably should have just called the 738 and started over.
Photo by Tienko Dima on Unsplash
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