Defense Spending Is Surging — and This Stock Is Leading the Charge

When stealth meets strength, traders pay attention—and right now, one key defense-tech name is doing just that. The defense and aerospace sector is in the midst of a regeneration cycle, driven by rising geopolitical tensions, modernization programs, and an urgent push for advanced communications and electronic warfare systems. This company has been at the forefront of contracts tied to battlefield communications, satellite upgrades, and next-gen mission systems, fueling consistent top-line growth and margin expansion. Its execution is winning over the Street, and the stock’s price action is proving equally persuasive. With momentum building and the trend unmistakably upward, this breakout is shaping up to be one no serious trader can ignore.

That defense powerhouse is L3Harris Technologies (LHX), a quiet market leader that’s suddenly commanding plenty of attention. As one of the world’s top providers of aerospace, communications, and surveillance systems, L3Harris has become a key beneficiary of the global surge in defense spending and the modernization of military technology. Its steady stream of contract wins and expanding backlog show how deeply embedded it’s become in next-generation command and control networks — the kind of long-cycle growth story Wall Street loves. Combine that with the company’s disciplined execution and robust cash flow, and you’ve got a stock that’s not just rallying on hype — it’s rallying on hard fundamentals. The market’s vote of confidence is clear: buyers keep stepping in, and the charts are echoing that conviction loud and clear.

🔮 Aspiring Investors, are you ready to demystify options trading? Unlock the secrets of the stock and options market with ‘Options Trading Made Easy’ . Learn the step-by-step plan to navigate risks, potentially increase your capital, and access Chuck’s proven strategies. Get My Free eBook 📈

What’s really confirming this strength is the chart itself — and it’s a beauty. LHX is trading above every significant trendline, from the short-term 20-day to the long-term 200-day moving average, showing an orderly, confident advance that serious traders love to see. The uptrend isn’t just alive — it’s accelerating. But what truly caught my attention is the On-Balance Volume (OBV) indicator, which is sloping sharply higher as buyers continue to scoop up shares on nearly every dip. That tells me demand is overpowering supply, a key hallmark of a healthy, durable rally. When a chart shows this kind of synchronized momentum — price, volume, and trend all working together — it’s usually not just a short-term pop… it’s the start of something bigger.

With a technical backdrop this strong, I’m targeting this setup with a directional call option purchase. LHX’s chart is sending a clear message — momentum is firm, trend strength is undeniable, and the breakout potential is too good to ignore. At current prices, there’s a slightly in-the-money call that offers a potential gain of 212.9% if shares advance just 10% by expiration. That kind of potential gain is exactly what I look for in a high-confidence setup — a trade positioned to fully capitalize on a continued move higher.

If you want to see more trade setups like this — real opportunities, backed by technical precision — you need check out our Options For Income Newsletter. Each week, our team shares multiple income-focused trade ideas built on the same proven methods that power every T.O.D. setup. And right now, you can get your first month for just $1 — that’s four full weeks of expert’s ideas and trade alerts for less than what most people tip on takeout. 💥 Don’t sit on the sidelines — grab your $1 trial today and start seeing how smart income trading is done.

Wishing You the Best in Investing Success,