NEW YORK ( TheStreet) -- Investor concern over fallout from the Boeing (BA) crash in San Francisco can rest easy. Early reports indicate pilot error as the most likely cause. According to reports, Lee Kang-Kuk, the pilot in charge, is one of the most junior pilots for South Korean airline Asiana.The 777 is Boeing's first fly-by-wire using computer controls and has flown since United Continental Holdings (UAL) took the first delivery in 1995. Over 98% of the more than 1,000 777s continue in service. The 777s ranks as one of the safest aircraft models in service. Three of the top five safest jets you can fly are produced by Boeing.
Still, investors may wish to take some gains off the table. Boeing's shares have increased over 40% from this time last year and achieved a 52-week high recently. The weekly stock chart is quite extended, and shareholders should anticipate price consolidation in the near term. An effective method of holding long-term positions while adjusting for short-term turbulence is through options. Selling covered calls decreases shareholder risk and volatility while allowing investors to receive quarterly dividends and avoid capital-gains taxes. For example, by selling a September $105 strike call at $3.50, an investor is eligible for the next 48.5 cent dividend and reduces any unexpected drop in price by 3%. If Boeing continues higher, and on expiration day the shares are trading above $105, simply buy the call option to close out the option trade and rollover to the next appropriate strike and expiration combination. Rinse and repeat, while collecting "rent" in the process. Or let the shares go if another superior investment opportunity presents itself.