Defense Leadership in a Shaky Market

With market volatility picking up, the tape has felt less like a broad wave of stocks moving higher and more like a process of quiet selection. Names tied to defense and aerospace have been holding their ground while Big Tech and momentum names churn. Overall, the market has been rewarding persistence over momentum bursts, favoring trends that stay bid on pullbacks.

That dynamic leads us to LMT (Lockheed Martin). The stock has been stair-stepping higher above all of its key moving averages, printing a clean series of higher highs and higher lows rather than sloppy chop. What makes that more meaningful is the OBV line, which began tilting upward in early December and has kept inflecting since. In plain terms, volume has been confirming price, suggesting larger players have been consistently absorbing supply rather than chasing headlines.

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Instead of simply buying calls or the stock outright after a sharp run, a defined-risk, in-the-money call debit spread lines up with the character of this setup. It allows participation in further upside while baking in a margin of safety if volatility stays elevated. Structurally, this kind of spread can still target roughly a 50.4% potential gain even if LMT finishes flat — or drifts down as much as about 7.5% — into expiration, which is why it fits the risk profile here. You get bullish exposure to a durable trend, but with your risk parameters set in advance.

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Wishing You the Best in Investing Success,