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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 Monday morning. This is going to be a long and super speculative blog which has somehow caught my attention. Please try and get through it. 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 recognizing their usefulness in the world of military fighting. Other countries all over the world have companies also make drones. Trumph has helped to bump up the values of these three North Americian companies in the first half of this year. It's all 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 trading drone stocks is causing chaos. 1) First a company called Red Cat. Google that name if you like. Here are two series of their Call options. Five days ago this stock hit $12.00. Now it's crashing.. .... The interest here is only...
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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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