Where is the next Frank drone pick going?

BY ANDREW GIOVINAZZI

November 26, 2024

Yo Pit Crazies,

I am looking at Twitter and who of all people says, spending 100 million dollars on fighter jets when we can spend $50k on drones? Who, none other than the Doyenne of DOGE, Elon Musk. That got my attention. My guess is the new administration might take this spending thing seriously. Drones provide a lot of value and to be quite honest it is a scary consequence of the Ukraine war to see how effective they are.

But we have some Drone Tech and the Dept of Defense has a big interest in flexible systems. This is where our own Frank Gregory comes in handy. He knows something about drones as a co-founder of a drone company.

6 month RCAT chart

Redcat Inc (Ticker: RCAT) is a defense contractor that is getting some big orders as it takes a jump into the Big Leagues.

The 0 theta option for me is still the way to go.

This is what options were made for.

How to get long a stock at the top?

The 0 Theta setup helps a lot here. I like the idea of buying calls in RCAT and the market is certainly squeezing these small cap stocks higher. The high conviction side of the trade is the Theta 1 portion. That is where I want to pull in the income. RCAT is the high upside potential of the trade so I want to work bull calls or call spreads. Net the carry to hold the trade should be very low to 0 dollars.

Can RCAT keep going? Of course it can. But it is great to know I have a 0 theta trade to work with it. Jump into the 0 theta class today and learn how to do it.

To Your Trading Success,