Gentlemen, war is upon us. And since none us can personally influence the outcome of world events, the only rational mindset is 'how can we make money off this?'
Short term options on high beta defense stocks are my preferred vehicle for capitalizing on the current Middle East situation. And I believe $RCAT is the best positioned company to move in a big way over the next few weeks.
$RCAT makes best in class AI-enabled drones. Specifically drones used for short range reconnaissance, the type that would certainly be used for monitoring hostile movements in say, a takeover of a certain Strait and a certain Island.
$RCAT was already in a solid position before the war, sitting in the $11-12 range up from a Liquidation Day-induced $5 low in 2025. But then the conflict started on February 28th and it very rapidly spiked all the way to $18 by March 6th. If you caught that move with options, it was a 20 bagger.
After that it fell as low as $14 when the US "confirmed" the war was over three separate times. But then quickly returned to $18 in mid-March when it became very clear that the war was not in fact over at all, and continued escalatory shit was going down every day.
Since then $RCAT had phenomenally bullish earnings on March 18th: with revenue at $26 million, triple their last earnings and 161% year on year growth. EPS was negative (barely at -$0.17) because they are making all the right moves in massive infrastructure investment to mass produce drones in the future. A 520% increase in production capacity in fact.
Just like on any red day, high beta stocks are generally getting pummeled today. Which is why it's a beautiful entry point: $RCAT will continue to have these massive spikes as long as the war continues. I believe that it will for sure continue, for a few more weeks at the bare minimum. And that we will see $RCAT go back to $18 as a result and get a nice multi-bagger off these options.
Not financial advice.
Position: $RCAT $16 Calls Expiring April 10, 2026.
https://preview.redd.it/xwavzfbcdfrg1.png?width=1694&format=png&auto=webp&s=dd0e98e414a3f5425c30ac80f4908e79b83b97c9