Northrop Grumman's Stock Wobbles, But Dr. Evil Sees a Profit Opportunity! Mwah-ha-ha!

A Minor Setback? More Like a Molehill! (Compared to My Volcano Lair)

So Northrop Grumman or NOC as the cool kids call it had a bit of a...*ahem*...a 'disappointment' with their earnings. Apparently not everyone's as good at planning world domination er I mean strategic growth as yours truly! But fear not minions! This is merely a temporary setback! It's like when I lost Austin Powers his mojo. Sure it was bad but did it stop me? NO! Because I'm Dr. Evil and I see opportunities where others see... *checks notes* ...'red ink.'

The $450 Question (and the $545 Answer!)

Now some so called 'analysts' are trimming their ratings like Mini Me trimming my toenails! Pathetic! But these are the same people who said laser beams pointed at the moon were a bad idea! The point is the stock has found some 'solid footing' around the $450 mark. And get this the median price target is still at $545! That's almost ONE HUNDRED dollars higher! Think of all the sharks with frickin' laser beams attached to their heads I could buy with that kind of profit!

Industrial Strength! (Like My Evil Plans)

And it's not just NOC baby! The whole industrials sector represented by this XLI thingy is looking strong! It's like the tides turning in my favor or Austin getting stuck in a shag carpet. The broader market recovery rally is picking up steam and NOC is riding that wave. Mwah ha ha!

Technical mumbo jumbo (even I almost understood it)

Okay let's get to the exciting stuff. To make a great trade you need to confirm signals and improve the odds of success. The Relative Strength Index (RSI) is moving higher. And the Directional Movement Index (DMI) shows that the trend is about to shift. Like my plans to take over the world!!

The "Bull Call Spread": My New Favorite Sandwich! (That Makes Money)

Here's where the magic happens or as I like to call it the 'evil genius' comes into play. We're going to execute something called a "bull call spread." We buy the $480 call and sell the $485 call! That's brilliant! It's like putting a sombrero on a wiener...hot!

The Evil Trade (For Maximum Profits!)

Here's the deal baby! Buy the $480 call May 30th expiry. Sell the $485 call May 30th expiry. The cost? A measly $250! The potential profit? A whopping $250! A 100% return! With 10 contracts we're talking about risking $2500 to potentially gain $2500! This is what I like to call a 'win win' situation. Unless you're Austin Powers then it's a 'lose lose' situation! This info and many more evil trading strategies can be found in Nishant Pant's book Mean Reversion Trading .