Red Cat Holdings Inc. (RCAT) stock surged 14.84% on Tuesday, continuing its recent upward momentum.
The sharp rise in RCAT's share price coincided with a significant spike in bullish options trading activity. According to data, over 22,000 call options were traded in RCAT, representing 1.3 times the expected volume. Additionally, the implied volatility of RCAT options increased by more than 5 points, reaching 159.3%.
Heavy call option trading and rising implied volatility often signal increased speculation and potential for further upside movement in a stock. Traders appear to be positioning for additional gains in RCAT, likely driving up the demand for shares.