10-28-2020, 01:02 PM
(10-28-2020, 12:48 PM)crimsonghost747 Wrote: As you guys know, I have a large RTX position.It's all about when you arrive at the party. LHX has roughed me up some for sure. The strike $185 covered call I sold a few weeks ago looks OK though lol. In the shorterm who knows on defense stocks but I lose no sleep about the long-term. Most of my port is round lots and I sold covered calls on 2/3rds of my port over the course of the past month. Should have sold them in the money but I'm not that bold lol. My crystal ball has been working much better the past 6 months. J/K it wasn't hard to imagine this BS US election drama wouldn't shake the market at least a little. I have a lot of cash but it's never enough if you dive in too early.
For one, the company is not the same one it was in February, so a 50% decline may very well be justified. It will take a long time for the aftermarket to recover, months and months longer than it takes for air travel to recover. And that doesn't appear to be happening anytime soon. Plus the balance sheet of RTX is far, far worse than the absolutely pristine one that RTN kept. (no big issues with the current balance sheet, but it's far from what it used to be)
I'll also be selling a put sometime this week, but purely as a trading strategy, I do not plan on getting assigned another 100 shares. (I have enough already, and other defense companies such as LHX are just way better positioned right now)