Best Options Strategy for RCAT
Looking for the best options strategy for Red Cat Holdings, Inc. (RCAT)? There is no single answer — the right play depends on your outlook, your risk tolerance and current implied volatility. Below, our free engine shows the highest-scoring defined-risk strategy on the live RCAT option chain right now, and a simple map from your view on RCAT to the strategy that fits it. Model any of them in the calculator before you trade.
About RCAT
Red Cat Holdings, Inc. (RCAT) is a major company in Aerospace & Defense. Options traders on RCAT tend to watch , since these can drive large moves in the share price.
Today's top-scoring strategy for RCAT
Our engine ranks defined-risk strategies on the live RCAT chain by probability of profit and risk/reward, then surfaces the best-scoring one. It is an educational illustration, not advice.
| Action | Qty | Type | Strike | Premium |
|---|---|---|---|---|
| Buy | 1× | PUT | $6 | $0.10 |
| Sell | 1× | PUT | $7.5 | $0.38 |
| Sell | 1× | CALL | $9.5 | $0.45 |
| Buy | 1× | CALL | $11 | $0.22 |
Simulation
Forward simulation of 6,000 lognormal price paths to expiration — not a historical backtest.
Strategy analysis
Greeks vs price
Price × volatility (today)
| −30% | −15% | IV | +15% | +30% | |
|---|---|---|---|---|---|
| $10 | −$26 | −$26 | −$28 | −$31 | −$34 |
| $10 | −$13 | −$17 | −$21 | −$26 | −$30 |
| $10 | −$1 | −$8 | −$15 | −$21 | −$27 |
| $9 | $9 | −$1 | −$10 | −$18 | −$25 |
| $9 | $15 | $3 | −$8 | −$17 | −$24 |
| $8 | $16 | $3 | −$8 | −$17 | −$25 |
| $8 | $12 | −$0 | −$11 | −$20 | −$27 |
| $7 | $1 | −$8 | −$17 | −$25 | −$31 |
| $7 | −$14 | −$20 | −$26 | −$32 | −$37 |
| $7 | −$33 | −$35 | −$38 | −$41 | −$45 |
| $6 | −$53 | −$51 | −$51 | −$52 | −$53 |
Live scan from 2026-09-09 · quotes delayed ~15 minutes
Historical backtest: how a Iron Condor on RCAT would have performed
We approximated a Iron Condor on RCAT, entered repeatedly over the past year (93 historical entries, each held to expiration) with Black-Scholes-modelled entry premiums. Here is how that would have played out on real RCAT price history — an educational backtest, not a prediction of future returns.
Approximate: entry premiums are modelled with Black-Scholes from trailing realised volatility, held to expiration and settled against the real historical close. Real fills, implied volatility and slippage differ — treat it as directional context, not exact returns.
Implied volatility
RCAT is currently trading with high implied volatility, which makes its options expensive — and attractive to sell. On the options we scanned that was around 84% implied volatility, and higher implied volatility means richer premiums and wider expected moves.
Options on RCAT currently price in about 84% implied volatility, versus roughly 85% the stock has actually realised over the past month. The two are roughly in line, so neither buying nor selling premium has a clear volatility edge here.
Off that volatility, the options market is pricing a move of about ±$1.97 (±24%) in RCAT by 2026-10-09 — a range of roughly $6.35 to $10.29. Strikes inside that band hold most of the premium and see most of the action.
Across strikes, upside calls on RCAT carry a higher implied volatility than downside puts — demand is tilted to the upside, which favours call spreads or selling cash-secured puts.
RCAT options chain highlights: open interest, volume and skew
The live RCAT options chain shows a put/call open-interest ratio of 0.97 (balanced), with at-the-money implied volatility near 82.9%. Open interest clusters at the $10.5 call — a common resistance "wall" — and the $7 put, a support "wall": the strikes option writers are most exposed to into expiration.
Snapshot of open interest, volume and implied volatility for the nearest scanned expiration — context, not a trading signal.
RCAT insider trading activity (SEC Form 4)
Open-market insider transactions at RCAT over roughly the last six months, from SEC Form 4 filings. Open-market buys are the rarer, more telling signal — routine selling under pre-arranged plans is common, so read a net-selling figure with that in mind.
| Insider | Action | Shares | Value | Date |
|---|---|---|---|---|
| Moe Christopher R. | Sell | 20,000 | $210K | 2026-08-11 |
| Liuzza Nicholas Reyland JR | Sell | 55,000 | $585K | 2026-08-11 |
| Thompson Jeffrey M | Sell | 150,000 | $1.3M | 2026-07-15 |
| Funk Paul II | Sell | 165,028 | $1.9M | 2026-06-11 |
Source: SEC Form 4 filings via Finnhub. Open-market purchases (P) and sales (S) only — grants, option exercises, gifts and tax withholding are excluded. Informational context, not investment advice.
Liquidity and tradeability
RCAT options are thinly traded, with wide bid-ask spreads around 7.7% near the money that eat into any edge — favour simple single-leg or tight defined-risk trades, and always use limit orders.
Earnings & IV crush
RCAT's next earnings report is due around November 5, 2026. Options that expire after it price in a binary move, so their implied volatility is elevated and usually collapses right after the announcement — an "IV crush". If your expiration falls before this date, the trade sidesteps the event.
Key figures
- Market cap
- $1.3B
- Beta (vs market)
- 1.35
- 52-week range
- $5.77–$18.78 (20% up the range)
- Short interest
- 21.9% of float · 3.3 days to cover
With 21.9% of RCAT's float sold short, squeeze and gap risk are elevated — one reason its options can stay expensive.
Other strong setups for RCAT
If your view on RCAT differs, these also scored well in the latest scan:
How to choose an options strategy for RCAT
Start with your outlook on RCAT, then match it to a defined-risk structure. Here are the most common choices and when each makes sense:
Bullish
Buy a call for leverage with capped risk, or a bull call spread to lower the cost and breakeven when you have a target price.
Long Call → Bull Call Spread →Bearish
Buy a put to profit from a decline with defined risk, or a bear put spread to cheapen the trade when you expect a measured move down.
Long Put → Bear Put Spread →Neutral
Sell an iron condor to collect premium while RCAT stays between two strikes, or write a covered call against shares you already own.
Iron Condor → Covered Call →⧉ Embed this free calculator on your site →
How we pick the best strategy
For each ticker we pull the live option chain, build every supported strategy around the at-the-money strikes, and score them on probability of profit, risk/reward and capital efficiency — favouring defined-risk structures where the maximum loss is known up front. Methodology →
Open RCAT in the free calculator →
Frequently asked questions
What is the best options strategy for RCAT?
It depends on your outlook. Bullish traders often use a long call or bull call spread on RCAT; bearish traders a long put or bear put spread; neutral traders an iron condor or covered call. Our live scan above shows the current highest-scoring defined-risk play.
Are RCAT options liquid enough to trade?
Red Cat Holdings, Inc. (RCAT) is among the most actively-traded US options, which usually means tight bid/ask spreads and plenty of strikes and expirations — though you should always check the open interest and spread on the exact contract.
How much money do I need to trade RCAT options?
Buying a single RCAT call or put can cost as little as the premium (often one to a few hundred dollars), while income strategies like a cash-secured put need enough capital to buy 100 shares if assigned.
Is this financial advice?
No. Everything here is educational and uses delayed, third-party data. It is not a recommendation to trade RCAT or any security. Do your own research.
What does Red Cat Holdings, Inc. do?
Red Cat Holdings, Inc. (RCAT) operates in the Aerospace & Defense industry. The "About Red Cat Holdings, Inc." section above gives a fuller picture of what the company does and how it earns money.
Does Red Cat Holdings, Inc. pay a dividend?
We don't show a confirmed dividend yield for Red Cat Holdings, Inc. here, so treat it as uncertain: before writing calls, check its current dividend and ex-dividend date with your broker — an approaching ex-dividend date can trigger early assignment on in-the-money short calls.
When does Red Cat Holdings, Inc. next report earnings?
Red Cat Holdings, Inc.'s next earnings are expected around November 5, 2026. Implied volatility usually climbs into the report and drops sharply afterwards (IV crush) — important for any options position held over the date.
Price trend
Tickers related to RCAT
Comparing RCAT with similar names can help you choose the best options strategy:
Company information
- Headquarters
- 2800 South West Temple, Suite 5, South Salt Lake, UT, 84115, United States
- Industry
- Aerospace & Defense
- Employees
- 244
- CEO
- Mr. Jeffrey M. Thompson
- Phone
- 800 466 9152
- Website
- redcat.red
- Investor relations
- www.peacockfinancial.com/frameset.html
Best Options Strategy by Ticker →
Educational use only. Quotes are delayed ~15 minutes and nothing here is financial advice. Options trading involves substantial risk of loss. Privacy · Terms.