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Drone Stocks On A Really Bad Day

I did the math. The average one day drop on Friday on these five drone stocks was 13.93%. The D.J.I.A index on that same day was down almost 600 points. I don't play options on any of the stocks in this sector of the market. $Unusual Machines the most expensive of the six dropped down the most at 18.36% It now trades at $26.37. It has weekly options on it. Here are it's thirty and five day charts. What a nice run upwards it had last month. ... Now this. A look at how one series of it's Call options closed out the day. I see something I don't like. It's the small open interest numbers. That to me means poor liquidity whenever it comes time to execute a trade. That plus after such a big recent run upwards you would expect to see higher volumes of option trades. I have often talked about how I like trading $Walmart options because the bids and asks are so tight with instant fills. What about the other mentioned drone stocks on this list? Are they more playable? Let...
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Cat Calls

The markets opened stronger on a Friday morning and Caterpillar Calls jump over $8.00 in the thirty five minutes of trading. Look at the volume of trading on this series of options. Seven contracts! These are the Puts. What if the opening markets tops out? That volume of trading in the Puts is nothing.
Let's compare that number to the number of Calls on this series of Tesla Calls at the same time in the morning.
7 vs 17,309. Crazy. Why are people so afraid to play Caterpillar Calls when the stock has had such a strong surge as of late? Now let's move forward and look at how these two series of Caterpillar options are trading a few minutes later at 10:35 a.m.. The Calls are up even more which draws are attention to what the Puts are doing.
Notice the wide spread in the "Bid" and "Ask" on the Puts. This indicates that the option market makers are in a particulary vulnerable spot. Now this, the markets have changed. There was Trumph and China tariff news.
Caterpillar dropped.
It's just after 11:00 a.m. and the Puts paid off big time. We saw the Puts at 10:36 a.m. trade at $1.50 with a wide "bid and ask" ($1.25 and $2.63) and someone was lucky to get a fill after that time at $136.00. Now that all of this action has happened I would say it's time to sign off for the week. Here is how Caterpillar was trading at noon.
Here are it's end of day readings.
$1.32 went to $16.50. Not many traders caught this one.

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