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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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Caterpillar - It's First Quarter Earnings Report And Traders Are Staying Away. A Read Which Might Be A Good Reference Point Going Forward.

Boeing rallied yesterday on the release of it's earnings report only then to tank. Caterpillar is tanking this morning in the premarkets. Let's begin with it's 5 day and 30 day chart.
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The world needs to be rebuilt and Caterpillar is there to help. It's growing, it's got a good reputation, it's not laying off employees and it's doing just fine. If it misses a beat on it's earnings report so what? Life goes on. Then there are those pesky analyst who are known to offer a convoluted spin on things. If you like Caterpillar just buy it on the dips and put it away. So the markets will be opening on the commentary by the companies C.E.O of "sales about flat". Phrasing it that way is a recipe for short term disaster.
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The two printouts above show some of the early morning action in one Put series and in One Call series. What happened the next day? A slight rebound with next to no traders trying to capitalize on a rebound. What does this tell us? It tells us option traders in general stay away from trading the "release of earning reports" on Caterpillar.
Now the one week out Call options.
Low open interest, a low volume of trading and relatively big pricings considering the these are only slightly "in-the-money" Calls which might take a few seeks to gain value. The bottom line is that this stock really got beat up and going forward it's going to be again upward journey. It helps that they are buying back their own shares. ** Now a look at how Caterpillar traded at the close on Monday April 29th.
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The volume of Calls traded is very light. That's suprising.

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