WEB EXCLUSIVE: Bulls say Raytheon is set to break out

  • Traders make a bullish bet on Raytheon
  • Heavy volume in the November 190 calls
  • Stock has risen more than 30% this year

Defense stocks have been on a tear this year as geopolitical tensions rise.

And according to some traders, the run may be far from over -- specifically in Raytheon.

On Monday bullish investors bought more than ten thousand November 190 calls. As of Monday's close the stock was trading at $188.70, so by purchasing November 190 calls traders are betting the stock will be above $190 by next month.

The options contracts give the traders the right to buy the stock for $190 even once it's surpassed that level.

Pete Najarian believes the stock is set to break out because of the company's involvement in different fields.

"This is a really interesting name. It's defense, it's cyber, it's everywhere that we talk about each and every day," he said.

The stock is up thirty-two percent this year, and it trades at 24.8X forward earnings.

Trader disclosure: Pete Najarian owns Raytheon calls & plans to hold one month.