Best Options Strategy for LMT
Looking for the best options strategy for Lockheed Martin (LMT)? There is no single answer — the right play depends on your outlook, your risk tolerance and current implied volatility. Below, our free engine shows the highest-scoring defined-risk strategy on the live LMT option chain right now, and a simple map from your view on LMT to the strategy that fits it. Model any of them in the calculator before you trade.
About LMT
Lockheed Martin (LMT) is a major company in aerospace and defense. Options traders on LMT tend to watch defense budgets, program awards and earnings, since these can drive large moves in the share price.
LMT for options traders
Lockheed Martin sits at the quieter end of the large-cap options universe. As the world's largest pure-play defense contractor — home to the F-35 fighter program, Aegis missile systems, and classified space projects — its revenue is driven almost entirely by long-cycle U.S. and allied government contracts. That revenue predictability keeps IV structurally suppressed: options on LMT routinely price in a fraction of the realized volatility you'd see on tech or biotech names of comparable size. Liquidity is decent at near-the-money strikes across standard expirations, though the chain thins out quickly at far strikes and in longer-dated months.
The sharpest moves in LMT tend to come not from earnings surprises — which are usually modest, given cost-plus contracts and multi-year program visibility — but from Washington: continuing-resolution budget standoffs, unexpected defense-spending shifts, geopolitical escalations that raise procurement urgency, or news around major program awards and cancellations. Because IV is structurally low, premium sellers find LMT attractive: covered calls suit long-term shareholders wanting to enhance yield on a slow-moving defense holding, while short puts can target attractive cost-basis entry points. When a macro or geopolitical catalyst is in play, defined-risk spreads — bull call spreads if sentiment turns hawkish on defense, bear put spreads if budget cuts loom — offer a capital-efficient way to take a directional view without overpaying for premium in a low-IV environment.
Today's top-scoring strategy for LMT
Our engine ranks defined-risk strategies on the live LMT chain by probability of profit and risk/reward, then surfaces the best-scoring one. It is an educational illustration, not advice.
| Action | Qty | Type | Strike | Premium |
|---|---|---|---|---|
| Buy | 1× | PUT | $530 | $0.43 |
| Sell | 1× | PUT | $550 | $1.96 |
| Sell | 1× | CALL | $610 | $2.93 |
| Buy | 1× | CALL | $630 | $0.71 |
Simulation
Forward simulation of 6,000 lognormal price paths to expiration — not a historical backtest.
Strategy analysis
Greeks vs price
Price × volatility (today)
| −30% | −15% | IV | +15% | +30% | |
|---|---|---|---|---|---|
| $727 | −$1,625 | −$1,625 | −$1,623 | −$1,617 | −$1,606 |
| $697 | −$1,624 | −$1,617 | −$1,600 | −$1,575 | −$1,541 |
| $668 | −$1,582 | −$1,531 | −$1,471 | −$1,410 | −$1,352 |
| $639 | −$1,211 | −$1,124 | −$1,057 | −$1,006 | −$969 |
| $610 | −$283 | −$338 | −$387 | −$436 | −$487 |
| $581 | $248 | $132 | $6 | −$117 | −$231 |
| $552 | −$187 | −$265 | −$335 | −$402 | −$467 |
| $523 | −$1,240 | −$1,161 | −$1,100 | −$1,054 | −$1,022 |
| $494 | −$1,609 | −$1,581 | −$1,542 | −$1,497 | −$1,451 |
| $465 | −$1,625 | −$1,624 | −$1,621 | −$1,614 | −$1,601 |
| $436 | −$1,625 | −$1,625 | −$1,625 | −$1,625 | −$1,624 |
Illustrative example at LMT's latest available price, computed with the same engine as the tool. Live option fills and the real IV skew refresh during US market hours.
Implied volatility
LMT is currently trading with low implied volatility, which keeps its option premiums relatively cheap. On the options we scanned that was around 18% implied volatility, and higher implied volatility means richer premiums and wider expected moves.
Options on LMT currently price in about 18% implied volatility, versus roughly 38% the stock has actually realised over the past month. That makes options relatively cheap — an edge for strategies that buy premium, such as long calls, long puts and debit spreads.
Off that volatility, the options market is pricing a move of about ±$29.62 (±5%) in LMT by 2026-09-04 — a range of roughly $552 to $611. Strikes inside that band hold most of the premium and see most of the action.
Across strikes, puts and calls on LMT carry a fairly symmetric implied volatility — no strong directional fear is priced in either way.
LMT insider trading activity (SEC Form 4)
Open-market insider transactions at LMT over roughly the last six months, from SEC Form 4 filings. Open-market buys are the rarer, more telling signal — routine selling under pre-arranged plans is common, so read a net-selling figure with that in mind.
| Insider | Action | Shares | Value | Date |
|---|---|---|---|---|
| Cahill Timothy S | Sell | 1,280 | — | 2026-03-11 |
| Cahill Timothy S | Sell | 900 | — | 2026-03-11 |
| Cahill Timothy S | Sell | 640 | — | 2026-03-11 |
| Cahill Timothy S | Sell | 600 | — | 2026-03-11 |
| Cahill Timothy S | Sell | 440 | — | 2026-03-11 |
| Cahill Timothy S | Sell | 400 | — | 2026-03-11 |
Source: SEC Form 4 filings via Finnhub. Open-market purchases (P) and sales (S) only — grants, option exercises, gifts and tax withholding are excluded. Informational context, not investment advice.
LMT congressional trading (STOCK Act)
Recent LMT stock trades disclosed by members of the US Congress under the STOCK Act. Lawmakers must report trades within 45 days; amounts are disclosed only as broad ranges, and a trade is not an endorsement — treat it as context, not a signal.
| Member | Chamber | Action | Amount | Date |
|---|---|---|---|---|
| Tommy Tuberville (AL) | Senate | Sell | $15,001 - $50,000 | 2026-06-08 |
Source: US House & Senate financial disclosures via Financial Modeling Prep. Amounts are the disclosed ranges. Informational context, not investment advice.
Earnings & IV crush
LMT's next earnings report is due around October 20, 2026. Options that expire after it price in a binary move, so their implied volatility is elevated and usually collapses right after the announcement — an "IV crush". If your expiration falls before this date, the trade sidesteps the event.
Dividend and assignment risk
LMT pays a dividend of about 2.3% a year, so short or covered calls on it carry early-assignment risk around each ex-dividend date — in-the-money calls are most exposed just before the stock goes ex-dividend.
Key figures
- Market cap
- $134.2B
- Beta (vs market)
- 0.11
- 52-week range
- $423.91–$692.00 (59% up the range)
- Short interest
- 1.6% of float · 2.4 days to cover
How to choose an options strategy for LMT
Start with your outlook on LMT, then match it to a defined-risk structure. Here are the most common choices and when each makes sense:
Bullish
Buy a call for leverage with capped risk, or a bull call spread to lower the cost and breakeven when you have a target price.
Long Call → Bull Call Spread →Bearish
Buy a put to profit from a decline with defined risk, or a bear put spread to cheapen the trade when you expect a measured move down.
Long Put → Bear Put Spread →Neutral
Sell an iron condor to collect premium while LMT stays between two strikes, or write a covered call against shares you already own.
Iron Condor → Covered Call →⧉ Embed this free calculator on your site →
How we pick the best strategy
For each ticker we pull the live option chain, build every supported strategy around the at-the-money strikes, and score them on probability of profit, risk/reward and capital efficiency — favouring defined-risk structures where the maximum loss is known up front. Methodology →
Open LMT in the free calculator →
Frequently asked questions
What is the best options strategy for LMT?
It depends on your outlook. Bullish traders often use a long call or bull call spread on LMT; bearish traders a long put or bear put spread; neutral traders an iron condor or covered call. Our live scan above shows the current highest-scoring defined-risk play.
Are LMT options liquid enough to trade?
Lockheed Martin (LMT) is among the most actively-traded US options, which usually means tight bid/ask spreads and plenty of strikes and expirations — though you should always check the open interest and spread on the exact contract.
How much money do I need to trade LMT options?
Buying a single LMT call or put can cost as little as the premium (often one to a few hundred dollars), while income strategies like a cash-secured put need enough capital to buy 100 shares if assigned.
Is this financial advice?
No. Everything here is educational and uses delayed, third-party data. It is not a recommendation to trade LMT or any security. Do your own research.
What does Lockheed Martin do?
Lockheed Martin (LMT) operates in the Aerospace & Defense industry. The "About Lockheed Martin" section above gives a fuller picture of what the company does and how it earns money.
Does Lockheed Martin pay a dividend?
Yes — Lockheed Martin currently pays a dividend yielding about 2.3%. If you hold the shares (for example to write a covered call), the ex-dividend date can trigger early assignment, so check it beforehand.
When does Lockheed Martin next report earnings?
Lockheed Martin's next earnings are expected around October 20, 2026. Implied volatility usually climbs into the report and drops sharply afterwards (IV crush) — important for any options position held over the date.
Price trend
Tickers related to LMT
Comparing LMT with similar names can help you choose the best options strategy:
Company information
- Headquarters
- 6801 Rockledge Drive, Bethesda, MD, 20817, United States
- Industry
- Aerospace & Defense
- Employees
- 123,000
- CEO
- Mr. James D. Taiclet Jr.
- Phone
- 301 897 6000
- Website
- www.lockheedmartin.com
- Investor relations
- phx.corporate-ir.net/phoenix.zhtml?c=83941&p=irol-IRHome
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