Northrop Grumman Options Traders Expect Big Move Ahead

Northrop Grumman Corporation's options traders are pricing in a big move for the company, with the Sept 19, 2025 $680.00 Put having high implied volatility. However, the Zacks Consensus Estimate for the current quarter has moved from $7.76 per share to $6.62 in the last 60 days, reflecting mixed analyst sentiment. The high implied volatility could mean a trade is developing, with some traders looking to sell premium and capture decay.

Northrop Grumman Corporation (NYSE:NOC) has seen significant activity in its stock options, with traders pricing in a substantial move for the company. Notably, the September 19, 2025, $680.00 Put option exhibits high implied volatility, indicating a potential trade developing. This high volatility suggests that some traders are positioning to sell premium and capture decay, reflecting a cautious yet speculative sentiment.

The Zacks Consensus Estimate for the current quarter has shifted from $7.76 per share to $6.62 over the past 60 days, reflecting mixed analyst sentiment. While this change reflects a decrease in earnings expectations, it is important to note that the stock has shown resilience in recent quarters, with earnings per share (EPS) of $7.11 for the last quarter, surpassing the consensus estimate of $6.84 [1].

Institutional investors have also been active in Northrop Grumman's stock. Texas Capital Bank Wealth Management Services Inc. purchased a new stake in Northrop Grumman worth approximately $292,000 in the first quarter, while Banco Bilbao Vizcaya Argentaria S.A. increased its holding by 10.9%, owning 19,743 shares valued at $10,124,000 [2]. These moves suggest a positive outlook among institutional investors.

Northrop Grumman's insiders have also been active, with VP Thomas H. Jones and VP Robert J. Fleming selling a significant number of shares totaling $8.3 million in the last quarter [2]. This activity, combined with the mixed analyst sentiment, creates a complex picture for the company's stock.

Despite the mixed sentiment, Northrop Grumman has maintained a strong financial profile. The company reported a return on equity of 25.52% and a net margin of 9.74% for the last quarter. Revenue for the quarter was $10.35 billion, up 1.3% year-over-year [1].

In summary, Northrop Grumman's stock options market indicates a potential trade developing, with high implied volatility in the $680.00 Put option. Meanwhile, mixed analyst sentiment and insider trading activity create a complex investment environment. However, the company's strong financial performance and institutional investor interest provide a solid foundation for investors to consider.

References
[1] https://www.marketbeat.com/instant-alerts/filing-texas-capital-bank-wealth-management-services-inc-invests-292000-in-northrop-grumman-corporation-noc-2025-08-20/
[2] https://www.marketbeat.com/instant-alerts/filing-banco-bilbao-vizcaya-argentaria-sa-increases-stake-in-northrop-grumman-corporation-noc-2025-08-20/