What is the anticipated timeline for the lawsuit's resolution and its potential impact on short‑term trading volatility?

Timeline Outlook – Securities‑fraud suits against a company the size of Lockheed Martin rarely settle quickly. Even a preliminary dismissal or a settlement‑talks phase typically takes 6‑12 months to reach a meaningful decision, and a full trial can stretch 12‑18 months after filing. The DJS Law Group’s notice (dated Aug 18 2025) is an early‑stage “investigation” rather than a filed complaint, so the market can reasonably expect that any formal pleading and discovery will not begin for another 2‑3 months, pushing any tangible resolution well beyond the next earnings cycle.

Short‑Term Volatility Impact – Because the suit is still in the discovery‑phase rumor zone, it will act as a catalyst for intermittent price spikes rather than a sustained trend. Expect inflated option implied volatilities (≈ 30‑35 % for 30‑day calls/puts versus the 25‑27 % baseline) and higher intraday swing potential (±1.5‑2 % on news‑driven bursts). Traders should watch the volume‑price relationship: a sudden uptick in volume accompanied by a 0.5‑1 % dip could signal short‑covering or defensive positioning by institutional owners.

Actionable Take‑away – For the next 4‑6 weeks, treat LMT as a high‑beta defensive stock – stay long on the underlying only if you have a strong conviction in the defense‑sector backdrop, but protect downside with tight stops (≈ 2 % below recent lows) or cheap puts. If implied volatilities stay elevated, consider selling out‑of‑the‑money weekly puts to capture premium while limiting risk, and be ready to unwind if a formal filing or a settlement hint surfaces, at which point the volatility premium will likely deflate sharply.