Call Traders Target Defense Stock After Earnings Win

RTX is trading at its highest level since a late-July post-earnings bear gap

Deputy Editor
Jan 23, 2024 at 10:48 AM
facebook X logo linkedin

The shares of RTX Corp (NYSE:RTX) are leading the S&P 500 Index (SPX) today, up 7.5% at $91.41 at last glance. The stock is on track for their best single-session gain since November 2020, after the defense contractor's better-than-expected fourth-quarter results, helped by aviation strength and defense demand globally. RTX is capitalizing on the shortage of new jets amid the uptick in travel. 

Today's pop has RTX stock breaking above the $87 level, which coincides with its 200-day moving average and provided a firm ceiling of pressure since the start of 2024. The shares are now trading at their highest level since a July 25 post-earnings bear gap of 10.2%. Since last January, the stock is currently down 4.5%. 

Options bulls were quick to get in on the action this morning. So far, 58,000 calls have been exchanged in comparison o 13,000 puts, with overall options volume already at 2.2 times the average daily volume. The weekly 1/26 93-strike call is the most popular contract, followed by the 95-strike call in the same series, with new positions opening at both. 

Analysts have yet to chime in today, though there is plenty of room for optimism. Of the 18 analysts in coverage, 13 carry a "hold" or worse rating on RTX, while the 12-month consensus price target of $89.48 now sits at a small discount to current levels. A round of overdue bull notes could help RTX finally fill that late July bear gap. 


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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI