Insights 
VT 
RTX Corporation, an aerospace and defence contractor, is at a technical turning point, with its stock experiencing fluctuations after an upward trend. Previously following an ascending channel since May, the stock faced resistance near $178 in October and is currently trading around $173, a 3% drop.
The stock now eyes the lower channel support between $152 and $160, with a median line acting as an intermediate reference. A potential rebound at these levels could lead to a 10-15% swing toward upper resistance.
However, if RTX falls below the lower support, the channel’s integrity could be compromised, indicating a potential momentum shift and further decline. Observing the stock’s reaction to the support line is crucial to determine whether it stabilises or continues to drop.
RTX’s pullback highlights the need for the stock to prove its strength at significant levels within the resilient aerospace sector. The upcoming trading sessions will be critical in determining the stock’s future trajectory.
We are watching RTX Corporation closely as it pulls back toward $173 after being rejected from the $178 level. This is happening despite strong fundamentals, with the recent Q3 earnings report showing robust demand for Pratt & Whitney engines. Supporting this, the International Air Transport Association (IATA) noted that global air passenger traffic in September 2025 finally surpassed pre-pandemic levels for that month, which is a significant tailwind for the aerospace sector.
For those of us leaning bullish, this dip toward the channel support between $152 and $160 presents a potential opportunity. Selling cash-secured puts with a November or December 2025 expiration around the $155 strike could be a way to collect premium while defining an entry point we like. If the stock bounces from this support zone, those puts will likely expire worthless.
This strategy has worked well in the past, as we remember RTX showing relative strength and rewarding dip-buyers during the recovery following the 2022 market downturn. A successful defense of this channel could set us up for a move back toward the $180 resistance. The recent confirmation of a $1.2 billion Pentagon contract for new missile systems provides a solid backstop for the company’s defense segment revenue.
However, we must also prepare for the risk of the channel breaking down. If RTX slices through the $152 support level with heavy volume, buying January 2026 puts could protect against a deeper correction. Such a move would signal that broader market concerns are overriding the company’s positive sector-specific news.
The primary macro headwind remains the Federal Reserve’s recent signaling of a “higher for longer” interest rate policy, which tends to pressure equity valuations across the board. For traders already holding a long position in RTX, buying some downside protection via puts could be a prudent hedging strategy. The cost of these options is something to watch, as uncertainty at key technical levels can cause implied volatility to rise.
