5 High-Flying Aerospace/Defense Stocks

5 call contenders in the defense space

   

Each week I use my Power Stocks scanner to find the best stocks for options trading. The ones that caught my attention this week had all of the qualities I look for in a call option—the potential for a big move up (volatility) based on technicals and past activity in the stock, and good liquidity. All of these are names you’ll recognize, and for good reason—options which do not have liquidity may trap you into a position, or prevent you from taking a large enough position to make the transaction worthwhile.

The following stocks have those qualities I look for. I’ll leave it up to you to decide which strike price and month are appropriate for your trading style, but be sure to give yourself enough time to be right. I’ve also included the support and volatility levels my scanner has detected for these stocks. An average level of volatility in my system is considered 20.

  • Boeing (BA) was trading right around $101 support at $101.87 as of Friday’s close. Its volatility is slightly above average at 22.
  • General Dynamics (GD) is already flying high above its $78 support at $82.60. However with the high volatility level of 27, additional upside is possible.
  • Lockheed Martin (LMT) is trading in a “reestablished buy” pattern in which it has confirmed an uptrend after a period of leveling or pulling back. Currently at $112.53 with support at $107, this is a fairly steady climber, with volatility at 19.
  • Northrop Grumman (NOC) is another that has reconfirmed its uptrend. It shows support at $82 and is currently trading at $88.02 with average volatility (20).
  • United Technologies (UTX) is at an excellent buy point at current levels ($99.83). It has support at $95 and fairly low volatility at 15.

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