This Defense Stock Could Make Big Moves This Week
Benzinga2022-03-01
Most defense stocks were trading close to their 52-week highs on Monday amid the Russia-Ukraine crisis.
On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that Lockheed Martin Corporation(NYSE:LMT) traded nearly three times the average daily volumes on Monday.
There was a buyer of 5,950 of the April 430/385 1X2 put spreads for an average price of $8.40 per contract, Khouw mentioned. “That’s an outlay of $5 million in premium on a bet that would be worth $27 million if it falls back to the pre-invasion level,” he added.
Traders expect Lockheed Martin’s stock to decline by as much as 11% by April expiration.
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