The Attack of the Drones

BY ANDREW GIOVINAZZI

November 19, 2024

Yo Pit Crazies,

 

Well what we talked about Geopolitical events messing around with the stock market, I did not think it would happen so fast.  Frank was good at the RedCat Holdings (Ticker: RCAT) idea and this flew quickly with a 200% gain so far in calls we own.  Cue the Biden Administration going Green Light on long range missiles in Ukraine 2 years too late and I have to scratch my head.

 

Oil stocks should be flying, gold should be flying.  The market should be taking a big pause and drop a bit. In 2022 this would have ratcheted up the VIX to 24.  Today we had a moderate drop after a big week in VIX last week.  I only see glimpses of the moves I thought we would get.

VIX 5 day chart

Frank’s take on the election was crazy good.  Good for Bitcoin, bad for healthcare.

 

This Biden announcement means only one thing.

Drone stocks should be flying.

 

This is Kratos Defense and Security Solutions (Ticker: KTOS)

KTOS has flown this year, no pun intended, and I expect it to fly a little higher.  I added this to my IRA in the mid-teen’s and have been riding it higher.  I think the little pullback is a good buying opportunity and I wanted a 0 Theta Trade to make it happen.

 

KTOS 6 month chart

Andrew Giovinazzi

30-Year Trading Pro

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CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain

DELTA STRIKE: VLY Mar15 8 puts closed for a 88% gain

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OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain

Andrew Giovinazzi

Andrew Giovinazzi

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About the Author

Andrew Giovinazzi

Andrew Giovinazzi

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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