Bipartisan Buy

With the GOP Convention underway this week, the issue of national security will likely become a hot button topic, once again.

Expect to hear party leaders say things like the United States should maintain a strong national defense and the next president should preserve all options in dealing with conflicts abroad.

No matter where you stand on the issue personally, it would seem logical to think a McCain victory would benefit the defense sector. But that might not be the case.

According to Sanford Bernstein senior analyst Doug Harned the money spent on defense would not be substantially different if either McCain or Obama wins the White House.

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“The situation right now in terms of defense spending is tight,” explains Harned on Fast Money. “When you look at the high level of geo-political threats and the recapitalization of the military it doesn’t really matter what side of the aisle you're on. You’ve got to support increasing baseline investment in the defense budgets. Or else we’re not going to be able to deal with the threats that are out there.”

How do you trade?

The options action in Lockheed Martin suggests to me that this stock could go higher, explains Pete Najarian.

I think Dems are bullish for defense contractors, adds Jeff Macke.

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Trader disclosure: On Aug 28, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (WMT), (MSFT), (UUP); Macke Is Short (TM); Najarian Owns (ETFC); Najarian Owns (LEH) Put Spread, (LMT) Put Spread; Najarian Owns (SCHW) Call Spread, (LEH) Call Spread; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (AAPL) And An (AAPL) Collar; Najarian Owns (XLF) And An (XLF) Collar; Adami Owns (C), (GS), (INTC), (AGU), (MSFT), (NUE), (BTU); Finerman Owns (GS); Finerman's Firm And Finerman Own (KALU); Finerman's Firm Owns (MSFT), (SUN), (VLO), (TSO); Finerman's Firm Is Short (BA); Finerman's Firm Owns (AAPL) Calls, (JCG) Calls; Finerman's Firm And Finerman Own (C) Leaps; Finerman's Firm Is Short (IYR), (IJR), (SPY), (IWM), (MDY)

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Accounts Over Which Bernstein And/Or Affiliates Exercise Investment Discretion Own More Than 1% Of (LMT), (RTN), (NOC); (LMT), (GD), (RTN), (NOC), (BA) Are Or In Past 12 Months Were Clients Of Bernstein, Which Provided Non-Investment Banking Securities Related Services And Received Compensation For Such Services; An Affiliate Of Bernstein Received Compensation For Non-Investment Banking-Securities Related Services From (LMT), (RTN), (NOC), (BA)