For Speculative Accounts Only: Buy a UTX Straddle: 2/17/17 $105 Puts, $125 Calls. Jet Engines are most profitable aspect of fighter aircrafts. UTX P/E only 12.62 with dividend of 2.44%. If ATDT slashes defense budgets, this author believes UTX will fall proportionally more than LMT unless UTX is awarded the F-16 engine contract. LMT is buffeted by F-16 India contract and high profile, prolonged debate of NATO countries purchase orders of F-35 contracts.
How Lockheed can save $600M on the F-35A. The proof is in the pudding because the stock was only down 0.26% during the broad sell-off on 1/30/17. After hours, down 0.13%, and excellent reentry point for those who missed the original recommendation.