Red Cat Holdings surges 15.78% after-hours driven by options activity and technical reversal amid aerospace sector strength.

Red Cat Holdings (RCAT) surged 15.78% in after-hours trading, driven by a technical reversal and heightened options activity. The stock broke out of a prolonged range amid elevated volatility, with call options at the $14 and $14.50 strikes experiencing leveraged trading and implied volatility exceeding 150%. This surge aligned with broader aerospace sector strength, as ETFs like XAR and JEDI rose on geopolitical tensions, including reports of Iran attacking Israel’s Dimona nuclear facility. Elevated trading volume and proximity to the upper Bollinger Band signaled shifting market sentiment, while the stock’s rally above its 30-day moving average reinforced bullish momentum. Though Q4 revenue growth and military adoption were reported, the immediate price movement was more directly tied to technical and options-driven factors rather than earnings news.