RTX Surges 2.05% on Strategic AWS Partnership and Institutional Buying: What’s Fueling This Aerospace Giant’s Rally?

Summary
• Raytheon Technologies (RTX) surges 2.05% to $178.305, hitting an intraday high of $179.14
• Institutional investors boost stakes, including NewEdge Advisors’ 8.4% position increase to $24.6M
• Strong Q3 earnings ($1.70 EPS vs. $1.41 expected) and AWS cloud collaboration drive momentum
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RTX’s sharp intraday rally reflects a confluence of strategic advancements and institutional confidence. The stock’s 2.05% gain, fueled by a $1.70 EPS beat and a transformative AWS partnership, positions it as a focal point in the aerospace-defense sector. With institutional buying accelerating and technical indicators hinting at bullish momentum, investors are recalibrating their outlook for this industrial titan.

AWS Cloud Collaboration and Institutional Confidence Drive RTX’s Rally
RTX’s 2.05% intraday surge is anchored by two pivotal catalysts: a strategic AWS-powered cloud mission control initiative and a surge in institutional buying. The collaboration with Amazon Web Services, announced in early December, aims to modernize satellite data processing using cloud infrastructure and AI, directly enhancing RTX’s defense and space franchises. Simultaneously, NewEdge Advisors’ 8.4% stake increase to 168,522 shares ($24.6M) and broader institutional ownership (86.50%) signal growing conviction in RTX’s long-term narrative. These developments, paired with Q3 earnings that exceeded expectations by 20.6%, have ignited short-term optimism.

Aerospace & Defense Sector Gains Momentum as RTX Outperforms
The Aerospace & Defense sector, led by Lockheed Martin (LMT) with a 1.89% intraday gain, is benefiting from heightened defense spending and geopolitical tensions. RTX’s 2.05% rally outpaces LMT’s move, reflecting its unique positioning in cloud-enabled defense solutions. Recent sector news highlights Germany’s €35B military space strategy and the U.S. Air Force’s B-21 Raider bomber program, both of which align with RTX’s AWS collaboration. However, RTX’s focus on AI-driven mission control differentiates it from peers, offering a dual narrative of traditional defense growth and tech-driven innovation.

High-Leverage Call Options and ETFs to Capitalize on RTX’s Bullish Momentum
• 200-day average: 149.58 (well below current price)
• RSI: 51.8 (neutral, not overbought)
• MACD: -0.12 (bearish but near signal line)
• Bollinger Bands: Price at 178.305 (near upper band at 177.86)
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RTX’s technicals suggest a short-term bullish bias, with key support at 175.41 and resistance at 179.14. The stock’s 2.05% rally aligns with a breakout above its 50-day MA (171.47), supported by rising institutional ownership and a 52W high of $181.31. While no leveraged ETFs are available, the options chain offers high-leverage plays. Two top options stand out:

1. RTX20251219C180
• Type: Call
• Strike Price: $180
• Expiration: 2025-12-19
• IV: 19.93% (moderate)
• Leverage Ratio: 115.79%
• Delta: 0.396 (moderate sensitivity)
• Theta: -0.318 (high time decay)
• Gamma: 0.069 (high sensitivity to price moves)
• Turnover: $210,699 (high liquidity)
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This call option offers aggressive leverage for a 5% upside scenario (targeting $187.22). Payoff calculation: max(0, 187.22 - 180) = $7.22 per share. With high gamma and moderate delta, it benefits from continued price acceleration.

2. RTX20251219C182.5
• Type: Call
• Strike Price: $182.5
• Expiration: 2025-12-19
• IV: 19.94% (moderate)
• Leverage Ratio: 228.62%
• Delta: 0.241 (low sensitivity)
• Theta: -0.218 (high time decay)
• Gamma: 0.056 (moderate sensitivity)
• Turnover: $62,494 (solid liquidity)
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This high-leverage call thrives on a sharp move above $182.5. Payoff for a 5% upside (targeting $187.22): max(0, 187.22 - 182.5) = $4.72 per share. Its 228.62% leverage ratio makes it ideal for aggressive bulls expecting a breakout.

Action Insight: Position for a potential breakout above $179.14 with RTX20251219C180 as a high-leverage play. If the 52W high of $181.31 is cleared, RTX20251219C182.5 offers explosive upside.

Backtest RTX Stock Performance
The backtest of RTX's performance after a 2% intraday surge from 2022 to the present shows favorable results. The 3-Day win rate is 52.94%, the 10-Day win rate is 56.08%, and the 30-Day win rate is 62.55%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 4.08%, which occurred on day 59, suggesting that RTX can deliver decent gains even after the intraday surge.

RTX’s Bullish Momentum Gains Traction: Position for a Breakout or Consolidation?
RTX’s 2.05% rally, driven by AWS collaboration and institutional buying, signals a pivotal shift in its narrative. With technicals favoring a short-term bullish bias and options like RTX20251219C180 offering high leverage, the stock is primed for a test of its 52W high. Sector leader Lockheed Martin (LMT) rising 1.89% underscores the sector’s strength. Investors should monitor the $179.14 intraday high as a critical breakout level—clearing it could trigger a surge toward $181.31. For now, position for a potential breakout with high-leverage calls or watch for consolidation below $175.41 support.