On Friday, March 1, the sequester is scheduled to take effect, and it will remove about $45 billion from Pentagon programs. Despite this, Lockheed Martin saw heavy call option trading on Friday, with five calls trading for every put.
The biggest trade of the day was the purchase of 5,000 April 92.5-strike calls for $0.65. This was done with the stock at $88.50, and it is a bullish bet that the stock, which is down 4.5 percent year-to-date, will rally by at least 5 percent over the next month and a half.
Right now, there are two risks facing this stock: the sequester, and the Pentagon's grounding of the F-35 Joint Strike Fighter.