Can You Play The Dips On $10.00 Drone Stocks With One Week to Go?

November 05, 2025

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 what we will learn is that 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 the usefulness of their products 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 alarm. 1) First a company called "Red Cat". Google it if you wish.

Five days ago this stock hit $12.00. Now it's selling off hard.

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2) Now a Canadian stock named Draganfly. What a run upwards it has had this year!

I have blogged about this company before. The options on this one are set up differently. They are set up in one month intervals, not in one week intervals. This particular series of Calls we are looking at will not be expiring until November 23th. These Calls are set up in $2.50 increments meaning for example that there are the $5.00 series of options, the $7.50 series of options and the $10.00 series of options. A move of fifty cents in the stock's price will not move the needle very much on any series of their Call or Put options because built into their price is a premium for the time factor.

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3) Unusual Machines. This stock has a quarterly earnings report coming out on November 6th. They recently raised a ton more money. With all of this newly created wealth there will be more pressure on them to produce positive earning results or at least show some decreases in their burn rates.

Now here are some of the Monday dips I have referred to. All of the stocks on this list are down.

If you check out their highs of the year (see above) you will understand how volatile the share prices of all of these companies are. All are trading well below their previous 52 week highs. PART TWO. Everything is selling off in the first hour of trading. One lesson learned is not to be overly anxious jumping into a falling Monday morning downtrend. What is causing it to fall is not going to change in a matter of minutes. Here is how these three series of Call options closed out the day. First Red Cat. What an ugly looking chart. 1) Red Cat.

These two series of Call options are down 52% and 63% repectedly on the day. 2) Draganfly. Another sizeable loss on one series of it's short term Call options. Down 47%, however these ones unlike the other two companies we are looking at are different given that they still have a few more weeks of trading life left in them.

3) Unusual Machines. One series of it's Calls are down 53% on the day.

One thing in common with all three of these stocks is that it took until about 11:00 a.m. each day for the rate of free falling to stop. Tuesday gets even worse.

A daily decline this time on Tuesday of 12, 10 and 8% on some of the the stocks shown above! All of this happened on no real news. Let's review the damage. First Red Cat.

. This time we are going to look at only one series of it's Calls, the $10.50 series. Yesterday morning they were trading at $.52. Here is how they closed on Tuesday.

Down another 71% on the day! These are serious short term declines. Are all of these stocks now oversold? Who really wants to waste money trying to find out? Now Draganfly.

The Calls shrunk in one day from $1.02 to $.65. Finally the stock called Unusual Machines.

These are all massive share value declines in all three of these stocks in a two day period of time. So much money is being wiped out on paper. I said this could happen in my blog of October 19th blog entitled "Drone Stocks On A Terror". Enough of this bad news story. Its now Wednesday which are often known as "turn-around" days. Some of these stocks in this group have stopped falling. Yet with their charts looking so ugly it is hard to see anything good about to happen.

Am I now I am going to suggest these two option series are worth considering as a high risk trade? The lack of news as to why all of the stocks are selling off in this sector of the market scares me. Now a look at Red Cat again.

These Calls are "in-the-money" and for that reason are super sensitive to any kind of a price change. The second stock is "Unusual Machines". Remember once again that it has an earnings report coming out tomorrow which could be somewhat of a wildcard factor.

Once again these options are "in-the-money". The third stock I am following is Dragonfly which I do not like as much for a rebound. Dragonfly only has 54 employees. I think there share price is already overvalued. Here is it's chart and one of it's option prices.

Why don't I find value with these ones? Well they are the only one of the three that don't have expiring options this week. What this really means is that they will not give you the same quick kick I am looking for. Let's see what happens. Here is how the Unusual Machine and Red Cat options closed the day.

Only seven contracts traded with earnings coming out tomorrow. That's strange. Here is how Red Cat traded.

Hopefully the bottom is here. To be continued. Thursday. The answer to the question can you play the dips on $10.00 drone stocks with one week to go? The answer is no. Look at how the markets are down Thursday morning.

Have I wasted your time in reading all of this? In some ways not really. It helps to validate what you already know. One week options are dangerous on stocks in specific sectors of the markets that are vulnerable to big price swings. Look at how Unusual Machines is trading today. It's down again a massive chunk.

The extent of it's decline really hits home when we see it's five day chart. Where insiders aware that this was going to happen and were they using Puts as a vehicle to cash in on this downside action? Not at all. The interest in the Puts in all three of these stocks is very low.

To be continued. Here are Thursday's closing readings. First Red Cat. Down $.74 on the day. It was trading last week at just over $12.00 per share.

Now Dragonfly.

It was trading last week for over $11.00 a share. Last Unusual Machines. A few days back it was trading over $14.00 per share.

Will the "Red Cap" one day Calls and the one day Unusual Machine Calls do anything tomorrow which is a Friday? Here is how they closed today on a Thursday.

Can you see the wide gaps in the "bid-and-asks" and the poor liquidity? Let's see how it all closes out tomorrow. *Friday morning. More of the same! Down 10 and five and eight percent.