Red Cat Holdings Inc. (RCAT) stock surged 6.68% on Friday's trading session, driven by increased bullish speculation in the company's options market.
Traders reported significantly higher than normal call option volume in RCAT, with over 5,700 calls trading, 1.3 times the expected level. Additionally, the implied volatility for RCAT options spiked nearly 6 points to 167%, indicating heightened demand for bullish call options.
The elevated bullish options activity suggests investors are betting on further upside potential for RCAT shares in the near future, fueling the intraday rally in the stock price.
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