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AwesomeAvani
Jul 25, 2023 7:57 PM

RTX falls on good earnings and defense budget issues Long

RTX CorporationNYSE

Description

RTX is part of the boom defense sector thriving because of back orders created by

the Russian war against Ukraine. No matter good earnings it fell this week because

of the defense budget debate in Congress. No matter good intents to rein in the

defend spending escalation and spend in other areas such as social and infrastructure,

Russia has made the world more dangerous and national security of the US and its allies

trumps most spending except perhaps insterest on the national debt and paying the

holders of Treasuries. RTX dropped more than 10% from its tight consolidation range,

I see this dip as an excellent buying opportunity into a leader in the defense sector.

Trade active

Sideways price action albeit with decent trading volumes above the running mean. Accumulation before the recovery. Holding full position.

Comment

Updated idea
Comments
sjyb2011
Would you suggest call contract please
AwesomeAvani
@sjyb2011, For an intermediate term call option I would suggest striking $90 with an expiration of 11/17/23.. This has high open interest and a bid/ask spread of 3% From the chart I believe price will get to the mean VWAP area of 93 before either bouncing or another leg up. The same for the POC line area @ 96.5 This will cost about $207. For a shorter expiration, I would suggest 9/22/23 striking $86 for about the same premium but a spread of 5%. I would cut half the position at a profit of 50% and let the rest reun unitl 2-3 days before expiration and close them at the stock price high of the week. Linked here is an updated chart
AwesomeAvani
@ogunleyesolomon6, I am afraid I do not have a telgram channel or even any trader education services or any other similar activities. I am just a basic trader putting out ideas but not trying to make any money from it or anything. My perspective is just simple trying to help out. I have never joined any of the services chat rooms and trader education schemes. Simply self-taught and somewhat successful since I am up over 2000X over my original investment You can find on here a variety of traders that also run channels, chat rooms and services I am not one of them. I simply have not got that organized and am an older lazy guy who does not like to do anything that is time intensive nor am I financially hungry. BTW LMT, a defense sector peer looks good for a pullback trade targeting $465
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