Joby Aviation Soars 7.65% on Defense Collaboration Breakthrough – What’s Fueling the Surge?

Summary
• Joby Aviation (JOBY) surges 7.65% to $17.94, hitting an intraday high of $18.00.
• Partnership with L3Harris to develop hybrid VTOL aircraft for defense applications announced.
• Options volume spikes, with 20 contracts trading above $100,000 turnover.

Joby Aviation’s stock is experiencing its most dramatic intraday rally in months, driven by a strategic defense collaboration and heightened options activity. The stock’s 7.65% gain on a $17.94 close underscores investor optimism about expanded military applications for its hybrid VTOL technology.

Defense Collaboration Ignites JOBY's 7.65% Rally
Joby Aviation’s partnership with L3Harris to develop a gas turbine hybrid VTOL aircraft for defense applications has catalyzed the stock’s surge. The collaboration leverages Joby’s commercial aircraft platform and L3Harris’ defense expertise, with flight testing set to begin this fall and operational demonstrations planned for 2026. This marks a strategic pivot from its commercial air taxi focus to defense contracts, addressing critical U.S. military needs in long-range, crewed-uncrewed teaming and low-altitude mission capabilities. The news validates years of R&D and aligns with Department of Defense priorities, spurring immediate investor enthusiasm.

Aerospace & Defense Sector Mixed as JOBY Surges Amid Defense Pact
While the broader Aerospace & Defense sector remains mixed, with Lockheed Martin (LMT) down 0.34%, Joby Aviation’s rally is driven by its unique positioning in hybrid VTOL defense technology. Sector news highlights increased defense spending and procurement delays, but JOBY’s collaboration with L3Harris stands out for its potential to secure immediate military contracts. Unlike peers focused on traditional aerospace, JOBY’s autonomous, hybrid-electric platform addresses emerging U.S. defense needs in contested logistics and C-UAS operations, creating a distinct growth trajectory.

Tactical Options Plays Amid High Volatility: JOBY20250808C17.5 & JOBY20250808C18 Lead the Charge
• MACD: 1.93 (bullish divergence), Signal Line: 2.03 (bearish crossover), Histogram: -0.10 (short-term bearish).
• RSI: 73.1 (overbought), Bollinger Bands: $20.60 (upper), $15.06 (middle), $9.51 (lower).
• 200D MA: $7.99 (far below current price), 30D MA: $13.13 (support level).

JOBY’s 7.65% rally has pushed it near its 52-week high of $18.55, with RSI at overbought levels and MACD signaling mixed momentum. Key resistance lies at $18.00 (intraday high), with support at $15.06 (Bollinger midline). The 200D MA at $7.99 remains a long-term floor. Options liquidity is concentrated in August 8 and 15 expirations, with leverage ratios above 10% and implied volatilities (IV) near 100–117%.

JOBY20250808C17.5:
• Code: JOBY20250808C17.5, Type: Call, Strike: $17.50, Expiration: 2025-08-08
• IV: 117.54% (high volatility), Leverage Ratio: 12.35% (moderate), Delta: 0.5888 (balanced), Theta: -0.1254 (rapid time decay), Gamma: 0.1248 (responsive to price swings), Turnover: $49,668 (high liquidity).
• This call option is ideal for capturing a potential breakout above $18.00. With a 107.14% price change ratio and 12.35% leverage, it offers aggressive exposure if the stock sustains its rally. A 5% upside to $18.83 would yield a payoff of $1.33 per contract (max(0, 18.83 - 17.50)).

JOBY20250808C18:
• Code: JOBY20250808C18, Type: Call, Strike: $18.00, Expiration: 2025-08-08
• IV: 112.20% (high volatility), Leverage Ratio: 15.57% (strong), Delta: 0.5229 (moderate), Theta: -0.1189 (rapid decay), Gamma: 0.1339 (high sensitivity), Turnover: $78,038 (liquidity).
• This at-the-money call is optimal for short-term bets on a test of the 52-week high. A 5% upside to $18.83 would yield a $0.83 payoff (max(0, 18.83 - 18.00)). Its 15.57% leverage and 112.20% IV make it a high-conviction play for bulls expecting a breakout.

Aggressive bulls may consider JOBY20250808C18 into a break above $18.00.

Backtest Joby Aviation Stock Performance
The backtest of JOBY's performance after an intraday surge of 8% shows mixed results. While the stock experienced a maximum return of 8.20% on the date of the surge, the overall short-term performance was lackluster, with a 3-day win rate of 46.24%, a 10-day win rate of 50.64%, and a 30-day win rate of 52.84%. The average returns over these periods were negative, with a 3-day return of -0.12%, a 10-day return of 0.94%, and a 30-day return of 4.23%. This suggests that while JOBY can experience significant gains on the day of the surge, its ability to maintain these gains in the following days is mixed.

Position for JOBY's Next Move: Bullish Setup with Tactical Options Plays
Joby Aviation’s 7.65% rally is fueled by a strategic defense pivot, with technicals and options data suggesting continued volatility. The stock’s proximity to its 52-week high and overbought RSI (73.1) indicate potential for a pullback or breakout. Investors should monitor the $18.00 resistance level and the 200D MA at $7.99 for long-term support. While the Aerospace & Defense sector leader, Lockheed Martin (LMT), is down 0.34%, JOBY’s unique positioning in hybrid VTOL defense technology could drive further gains. Watch for a $18.00 breakout or a retest of $15.06. Aggressive bulls may consider JOBY20250808C18 into a break above $18.00.