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Unusual Machines - A Look At It's Calls

Lets start with this. A five day look at it's chart. Just over $14.00 at the start of last week to end just down under $12.00 at the end. Is anything bad with the company happening? Now this. An open interest of only 17 as of of Friday. Let's fast forward to February 19th. Here are other drone stocks to watch. They all seem to go up and down together. .. .. .. .. .. Options on ten dollar stocks are difficult to play and it gets more difficult when they are drone stocks. Dragonfly is a Canadian company and I live in Canada so this is one I follow. Here is it's one year chart. It's dangerous with a book value of only $.85 cents per share. Do your own homework. A January 10, 2027 Call will cost you $3.40. Yes there are traders who find value in this proposition. Options like this scare me.
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The Trade Of The Year On Caterpillar Calls. It's No Surprise It Happened On A Friday

In a past blog Caterpillar averted a strike and it was noted that the stock jumped to the moon on that news. Caterpillar has a large following and likes good news-made in America stories. Biden avoided his government running out of money late Thursday and on Friday the stock Caterpillar jumped to the moon. It opened higher and kept going up.There is no looking back now at what happened.
My May 29th blog talked about how Caterpillar had slight bounce last Friday morning and the light volume of option trading on it. With the stock going sideways to down all that week playing Call options on it was out of fashion. Things changed on Friday June 2nd. Caterpillar bounced. So here now is a look at how two "out-of-the-money" series of Call options traded on it on Friday.
Look at the open interest numbers going into Friday. Two hundred and ninety five contracts. Few traders were expecting the news to come when it did. This blog could now go in many directions. Last week both Caterpillar and Boeing struggled on the week and option trading volumes dried up. My attitude was not to trade, to wait for better days. I should have known better, the system is a little bit corrupt. Insiders could gain the most from a late Thursday release of good news. A one day pop in the next days options. That is what happened. On Friday the D.J.I. was up over 700 points. The one day options on Caterpillar were star performers. It was the "trade-of-the-year" on Caterpillar Calls. It doesn't look like any of the 100,000 or whatever the number of brokers and analysis there are out were clued into this action. So strange. * Also think about this. Caterpillar has something like 109,100 employees. I don't understand why there isn't more traders in on this action.

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