RTX Soars to 52-Week High on Defense Sector Breakthrough: Can This Momentum Sustain?

Summary
• RTX surges 2.68% to $183.08, hitting 52-week high of $183.18
• Raytheon secures $168M Patriot missile contract with Romania and PhantomStrike radar deal for U.S. Air Force autonomous jets
• Technical indicators show bullish momentum with MACD above signal line and RSI at 56.01

RTX’s 2.68% intraday rally has ignited investor enthusiasm, driven by two landmark defense contracts. The stock’s surge to a 52-week high reflects growing demand for advanced military tech amid global tensions. With technicals aligned for continuation and options liquidity surging, the defense sector leader is poised to test critical resistance levels.

Dual Defense Contracts Ignite RTX’s Bullish Surge
RTX’s 2.68% rally is directly tied to two major announcements: a $168.1 million Patriot missile defense contract with Romania and the PhantomStrike radar deal for U.S. Air Force autonomous jets. These contracts validate RTX’s leadership in next-gen defense systems, particularly in AI-driven combat aviation and missile defense. The PhantomStrike radar’s cost efficiency and technological innovation position RTX to capitalize on global military modernization trends, while the Patriot deal underscores sustained demand for air defense systems. Combined with a 52-week high breakout, these catalysts have triggered a surge in institutional and retail buying.

Aerospace & Defense Sector Gains Momentum as RTX Leads Innovation Charge
The Aerospace & Defense sector is rallying as geopolitical tensions and technological advancements drive demand for cutting-edge solutions. RTX’s PhantomStrike and Patriot contracts mirror sector-wide trends, including Lockheed Martin’s (LMT) 0.88% intraday gain and Northrop Grumman’s (NOC) 1.75% rise. With the global missile defense market projected to grow at 4.97% CAGR through 2030, RTX’s dual exposure to autonomous systems and traditional defense platforms positions it as a key beneficiary of this expansion.

Leverage RTX’s Bullish Momentum with Strategic Options and ETF Exposure
• 200-day MA: 151.03 (well below current price), 30-day MA: 174.57 (support near 173.09)
• MACD: 1.69 (above signal line 1.02), RSI: 56.01 (neutral), Bollinger Upper Band: 181.82 (near current price)

RTX’s technicals suggest a continuation of its bullish trend, with the 52-week high at 182.94 acting as a critical resistance level. The Leverage Shares 2X Long RTX Daily ETF (RTXG) offers amplified exposure, trading at 24.065 with a 5.07% intraday gain. For options, two contracts stand out:

• RTX20251226C182.5
- Call option, strike 182.5, expires 2025-12-26
- IV: 16.75% (moderate), Leverage: 91.39% (high), Delta: 0.5378 (high sensitivity), Theta: -0.4263 (high time decay), Gamma: 0.0876 (strong price sensitivity), Turnover: 20,520
- IV: Implied volatility suggests moderate risk/reward balance
- Leverage: High potential for amplified gains if price breaks above 182.5
- Delta: High sensitivity to price movements
- Theta: High time decay favors short-term holding
- Gamma: Strong responsiveness to volatility
- Turnover: High liquidity ensures easy entry/exit
- A 5% upside to 191.09 would yield a $8.59 payoff per share. With a delta near 0.54, this option offers aggressive exposure to near-term price action. High gamma ensures responsiveness to volatility.

• RTX20251226C185
- Call option, strike 185, expires 2025-12-26
- IV: 16.13% (moderate), Leverage: 205.36% (very high), Delta: 0.3184 (moderate sensitivity), Theta: -0.2846 (high time decay), Gamma: 0.0818 (strong price sensitivity), Turnover: 45,542
- IV: Implied volatility suggests moderate risk/reward balance
- Leverage: Very high potential for amplified gains if price breaks above 185
- Delta: Moderate sensitivity to price movements
- Theta: High time decay favors short-term holding
- Gamma: Strong responsiveness to volatility
- Turnover: Very high liquidity ensures easy entry/exit
- A 5% upside to 191.09 would yield a $6.09 payoff per share. This contract balances leverage and liquidity, ideal for capitalizing on a potential breakout above 185.

Aggressive bulls should consider RTX20251226C182.5 into a breakout above 182.5, while conservative traders may use RTXG for leveraged exposure. Watch for a close above 182.94 to confirm a new bullish phase.

Backtest RTX Stock Performance
The backtest of RTX's performance after a 3% intraday surge from 2022 to now shows favorable results, with increasing win rates and returns over different time frames. The 3-Day win rate is 53.56%, the 10-Day win rate is 56.92%, and the 30-Day win rate is 63.04%. The maximum return during the backtest was 4.28%, which occurred on day 59, indicating that RTX has a tendency to continue trending positively following a 3% intraday surge.

RTX’s Breakout: A Strategic Inflection Point for Defense Investors
RTX’s surge to a 52-week high reflects its pivotal role in the defense sector’s AI and missile defense revolution. With technicals aligned for a continuation of the bullish trend and two high-conviction options contracts available, the setup favors aggressive positioning. The sector leader Lockheed Martin (LMT) is gaining 0.88% today, reinforcing the broader theme of defense modernization. Investors should prioritize RTX20251226C182.5 for short-term gains and monitor the 182.94 level for a potential breakout. If confirmed, this could signal a new chapter for RTX as it capitalizes on its technological edge in autonomous warfare and global defense demand.