Red Cat Holdings Stock Discussion

• Jacob McCarthy : What type of strategy are you using for your options?

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• BelleWeather OP Jacob McCarthy : I started off speculating with calls and buying LEAPS on high conviction but inexpensive tickers. I have played around a bit with short dated and 0DTE calls on indices. Very rarely speculate with puts, but use protective ones (and callers.) Now I write calls against a portion of shares and LEAPS and puts when I feel high conviction stocks are beaten down. Very rarely naked calls as a way to short as well. Basically a mix of many strategies - whatever seems appropriate to market conditions. As a result I leg into and out of spreads as well (never open them at once.) I avoid earnings and both short and long strangles (conviction is key to my approach.) I also focus on shorting and longing IV as a hopeful added boost. My approach to deltas and other greeks varies wildly depending on the underlying and timing (though generally both buy and sell time.)

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• BelleWeather OP : Also, I write contracts to enter and exit positions I intend to hold (or have held) longterm, especially in high volatility.

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• Jacob McCarthy : If you write a contract wouldn’t that be even more risky? Also so your strategy is like a long strangle? Thank you for explaining this to me I’m just trying to learn and have a better understanding.

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• SkyTheLimit88 : see can touch 14 today?

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• 103665306 : Bullish, but why do internal employees keep selling?

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• QMengColdJoke : Yes. Selling like this feels a bit like going from rags to riches.

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• DarrenTCC : Shouldn't be that much.

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• DarrenTCC DarrenTCC : He sold more than 10% of the shares.

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• Andrew Aran OP : The valuation is so much greater than sales (roughly a billion dollar market cap vs single digit / low double digit millions revenue). Obviously the company will grow a lot and recently struck cool new contracts for 5k drones over 5 years. But that comes with a lot of execution risk, they’re reliant on one customer and there’s minimal visibility to the economics and terms of that contract. Investors are flying blind. Insiders are not.

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• Kokushibou : They have PLTR under their wing (a Paypal mafia baby), connections with Trump since his son jr. is on member board of UMAC (unusual machines) the one that manufactures their drones, nato pending contracts

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• Manshor : it is

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