LHX Forecast + Trading Strategies


Bullish Case: L3Harris enjoys a robust position in the defense market with strong demand for its electronic warfare and space technologies. The integration of Aerojet Rocketdyne heightens its potential growth, supported by favorable defense budgets.




Bearish Case: Persistent financial instability, highlighted by high debt levels and recent stock underperformance, may continue to spook investors. Market volatility and uncertain regulatory environments pose additional risks.




Potential Outcomes:

1) Defense contracts increase stock 50%.

2) Debt and instability decrease stock 25%.

3) Leader changes cause volatility 25%.




Trading Oracle: Short volatility strategy suggested. Sell 4 $200 puts, buy 5 $195 puts expiring in 15 days. This leverages mean-reverting nature and bearish sentiment, with a high 79% probability of profit and 64% annualized return.



February 07, 2025


L3Harris Forecast

LHX        L3Harris











Correlated Assets

Assets that tend to move strongly with LHX



EXR Forecast + Options Trading Strategies   EXR  Extra Space Storage (0.84)


KBH Forecast + Options Trading Strategies   KBH  KB Home (0.84)


HPQ Forecast + Options Trading Strategies   HPQ  HP (0.82)


PHM Forecast + Options Trading Strategies   PHM  PulteGroup (0.81)


ZETA Forecast + Options Trading Strategies   ZETA  Zeta Global Holdings Corp (0.81)



Uncorrelated Assets

Assets with little price relationship to LHX



NOG Forecast + Options Trading Strategies   NOG  Northern Oil and Gas (0.0)


AEHR Forecast + Options Trading Strategies   AEHR  Aehr Test Systems (0.0)


ON Forecast + Options Trading Strategies   ON  ON Semiconductor (0.0)


SCHW Forecast + Options Trading Strategies   SCHW  Charles Schwab (0.01)


WEBL Forecast + Options Trading Strategies   WEBL  Direxion Daily Dow Jones Internet Bull 3X Shares (0.01)



Anticorrelated Assets

Assets that tend to move strongly against LHX



AAP Forecast + Options Trading Strategies   AAP  Advance Auto Parts (-0.72)


WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (-0.74)


WST Forecast + Options Trading Strategies   WST  West Pharmaceutical Services (-0.77)


NGL Forecast + Options Trading Strategies   NGL  NGL Energy Partners (-0.78)


LABD Forecast + Options Trading Strategies   LABD  Direxion Daily S&P Biotech Bear 3X Shares (-0.78)









Become a more profitable investor with AI optimized trading strategies






×

Chat with LHX


 Ask any question about LHX!