This Defense Breakout Could Leave You in the Dust

As global security continues to appear in more & more headlines, markets start rewarding the companies best positioned to deliver solutions. That’s exactly what’s unfolding in the defense sector right now—billions in fresh spending are fueling a wave of demand, and one of the industry’s biggest players is capturing that momentum in real time. The charts are confirming it: while this consistent grind higher has been quiet, it’s a decisive breakout that’s been building for months. With trendlines stacked and momentum surging, this setup deserves much more attention than it has been given. Ignore a setup like this, and you’re not just missing a trade—you could be missing the trade.

The stock behind this surge is none other than General Dynamics (GD)—a powerhouse in the aerospace and defense sector that’s been riding a wave of bullish momentum for months. With defense budgets climbing across the Western world, demand for GD’s cutting-edge technologies, advanced military systems, and aerospace solutions has never been stronger. The fundamentals are lining up with the charts: steady revenue growth, a rock-solid backlog of contracts, and growing investor conviction that this stock is positioned to keep pressing higher. It’s no wonder traders everywhere are zeroing in on GD right now—this is the kind of setup where technicals and fundamentals collide to create explosive opportunity.

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From a technical standpoint, GD just flashed one of my favorite trend-following buy signals: in May, the 50-Day EMA crossed decisively above the 100-Day EMA, confirming a surge of momentum that can’t be ignored. This signal is still valid meaning the long-trend behind GD is as strong as ever. When you see a stock that’s been in a six-month uptrend pair that strength with this kind of technical confirmation, it’s no mistake—it’s a powerful green light that belongs on any serious trader’s radar. This is the exact type of breakout where short-term traders chase, long-term investors double down, and the next leg higher often unfolds faster than most expect.

Now that I know the stock, here’s how I’d look to play it: this setup is with a straight call option purchase. The technicals and momentum are impressive, and GD looks primed for another leg higher in short order. In fact, there’s a call option trading right now that could deliver 153.6% upside if the stock climbs just 10% into expiration. That’s the kind of 15-to-1 leveraged potential payoff I look to target with trades like this—risk contained, reward potential explosive. And this is exactly the kind of setup we spotlight every week in our Optioneering Newsletter, where our team breaks down multiple fresh trade opportunities you won’t want to miss. Right now, you can test-drive the entire service for your first month at ONLY $1. Don’t sit on the sidelines—click the image below to grab your trial today and start seeing the setups we’re eyeing in real time.

Wishing You the Best in Investing Success,