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Can You Play The Dips On $10.00 Drone Stocks With One Week to Go?

First off why would you want to? It's a Monday morning. As we get closer to the two final days of trading in the "one-week" options on the following three stocks the liquidity issue will make them somewhat difficult to trade. Let's start by looking at these three drone stocks and looking at how their one week to expiracy options are trading. Most drone stocks don't really yet make any money but the world is waking up to understand their usefulness when it comes to military fighting. Within this industry there is a lot of competition and there are many other countries also making drones. Trumph has helped to bump up the values of many of these drones stocks especially during the first half of this year. It's all now kind of a guessing game as to who the winners and losers are going to be. In the last few days a rough patch in the trading patterns of all drone stocks is causing some alarm. 1) First a company called "Red Cat". Google it if you wish. F...
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Harley-Davidson

First, I am not a big fan of playing options on stocks in the thirty and forty dollar range. It's not like speculating in Boeing or Caterpillar Calls and Puts with these stocks swinging up or down two or three dollars nearly everyday. Harley Davidson is a thirty five dollar stock. Look at how it is trading so poorly on the good earnings news back at the end of April.
Now here is some of this news.
All the good news was wiped out by the forecasting of a bit of a slowdown in the second half of this year. Investors who bought in early this year when the stock was trading over fifteen dollars higher who correctly anticipcated this surge of earnings must now feel so frustrated. Where are their rewards? Now look below and see where the January 37 Calls are trading at. If the stock gets above forty you would be in luck. That would buy you their next two earnings reports. By then management might see their business in a more favourable light. Yet the chart looks ugly and there doesn't seem to be a support level.* With most option positions "time value" works against you. When you purchase eight months of time and your reasonings for buying in turn out to be correct the time value can become your friend. It is however still a scary position to be considering.

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