This Defense Stock Could Make Big Moves This Week

Most defense stocks were trading close to their 52-week highs on Monday amid the Russia-Ukraine crisis.

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that Lockheed Martin Corporation LMT traded nearly three times the average daily volumes on Monday.

There was a buyer of 5,950 of the April 430/385 1X2 put spreads for an average price of $8.40 per contract, Khouw mentioned. “That’s an outlay of $5 million in premium on a bet that would be worth $27 million if it falls back to the pre-invasion level,” he added.

Traders expect Lockheed Martin’s stock to decline by as much as 11% by April expiration.