My Trade Plan Details:

• AVAV Oct 20, 2023 $115 calls near $1.80
• Stop: Close under $108
• Target 1: $118
• Target 2: $124

My Reasoning:

AVAV is my favorite aerospace/defense stock. I love the future potential for drones in many capacities, and this stock is the true leader.  Besides being a “best in class” stock, it is so unique that I feel it would be an excellent take over target at some point. There are many bigger competitors who would love to buy future growth like we have with AVAV.

I am still very nervous about the markets here, so “hiding” in strong stocks like  AVAV makes sense to me.  They can outperform when markets go up, and they will (hopefully) hold their ground better that others when things go downhill.

My plan for AVAV is to grab a position sometime today, hopefully around my target entry price, though you never know exactly what the market will give you.

I am going to keep a pretty tight stop on this trade with a closing price under $108.

If things go my way, I will be looking for an exit around $118, which is just under the recent high following their earnings report.  After that, I think we could see this hit $124 or more.

It is going to be a fun week of trading…I hope you are ready for it!