L3Harris Acquires Aerojet Rocketdyne in $4.7 Billion Deal

Now could be an ideal time to speculate on AJRD with options

Digital Content Manager
Dec 19, 2022 at 9:25 AM
facebook X logo linkedin


The shares of Aerojet Rocketdyne Holdings Inc (NYSE:AJRD) are up 1.8% at $55.85 this morning, after the company agreed to be bought by L3Harris Technologies (LHX) in a cash deal worth $4.7 billion, or $58 per share. L3Harris is looking to benefit on a rising demand for missiles, and the agreement is expected to close in 2023. 

AJRD surged to a record high of $56 on Nov. 30, with the pullback from here captured by the 30-day moving average. Since then, the stock hasn't strayed far from this level, finding support at the $53 mark. 

An unwinding of pessimism could put additional wind at the stock's back, as options traders are surprisingly bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 2.40 puts have been exchanged for every call during the past two weeks. This ratio stands higher than 90% of readings from the past year, implying a much healthier-than-usual appetite for puts of late. 

Now could be an ideal time to speculate on AJRD's next move with options, too. The equity's Schaeffer's Volatility Index (SVI) of 28% stands higher than just 9% of readings from the past year. In other words, options players are pricing in low volatility expectations for the security at the moment. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI