Bull staying aboard Lockheed Martin

By David Russell,

Shutterstock photo

One trader wants to keep riding the rally in Lockheed Martin.

optionMONSTER's monitoring programs detected the purchase of 4,190 January 75 calls for $3.66 and the sale of an equal number of December 75 calls for $2.56. Volume was below open interest in December but not in January, which suggests that an existing long position was rolled from one contract to the other.

The move cost the investor $1.10 and provides an additional month to profit from upside in the defense contractor. Such transactions frequently appear before expiration, which occurs this Friday.

LMT is upe 0.82 percent to $77.52 in afternoon trading. The stock is up 13 percent in the last year, compared with a flat performance for the S&P 500. It's beaten estimates for at least three straight quarters amid deals to build the F-35 fighter. (See researchLAB for more)

Overall option volume is twice the average amount so far today, with calls outnumbering puts by 19 to 1.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.

This article appears in: Investing Options
Referenced Stocks: LMT

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