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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 $12.0. Now it's crashing.. .... The interest here is only ...
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A Follow Up To A Recent Blog I Did About Playing Two Week Options

Let's begin by saying I am not a big fan of buying "two-week-out" options. Yes they cost a touch more than "one-week-out" options however that is not the reason why. I like thirty day out options and one year out options and Monday, Wednesday and Friday "one- day-options" better. So what's the matter with "two-week-out" options? Here is my answer. Back on January 6th we looked at the Interactive Brokers Group 180 series of Calls that expire on January 17th. At that time they were trading at $4.90 a contract. Here is a look at that printout I posted.
Now this, a Friday January 10th printout. The DJIA closed down over six hundred points on the day.
So here we are at the end of the week and we have for lack of a better word, wasted four days or almost half the life of these options. But wait. Can you see how they where down 47.66% on the day? That means on the previous closing session they were trading at $6.25 per contract. (It's a brokerage company so it's obvious it's going to drop on a day the market has a big sell off). Now a look at it's five day chart.
Imagine buying Puts on it on the morning rally on Tuesday morning and getting out at a huge profit minutes later at about 10:30 a.m. If you follow the charts wouldn't you recognize that could happen? If you answer yes then why do you need to clutter up your mind with "two-week-out" options. I say this because I feel more secure playing five, three or one day options than I do playing "two-week-out-options". Yet that's only me. ** Yes there was a decent profit to be had on the "two-week-out" options preceding Fridays precipice slide but that's another part on the "two-week-out" option holding syndrome. The urgency to take profits isn't there compared to playing shorter term options. ** How did these 185 Calls end up trading on January 17th?
Bottom line. The options on this stock are more interesting than most.

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