Ondas Holdings Soars 20.8% on Record Revenue and Strategic Expansion Momentum

Summary
• Ondas Holdings (ONDS) surges 20.8% to $4.145, hitting its 52-week high of $4.39
• Q2 revenue jumps 555% YoY to $6.3M, driven by $20.7M backlog and $14.3M defense contract
• Strategic partnerships with Rift Dynamics and Mistral Inc. expand global drone footprint
• $68.6M cash reserves and debt reduction signal financial strength

Ondas Holdings delivered a record-breaking quarter, fueled by explosive revenue growth, strategic alliances, and a robust backlog. The stock’s 20.8% intraday surge reflects investor confidence in its autonomous drone and rail tech expansion. With a $22M backlog and $68.6M cash cushion, the company is poised to capitalize on global defense and infrastructure demand.

Q2 Earnings and Strategic Alliances Ignite Investor Optimism
Ondas Holdings’ 20.8% surge stems from a record $6.3 million Q2 revenue, a 555% YoY increase, driven by $14.3 million in defense contracts and $3.8 million in Dubai follow-on orders. The company’s $20.7 million backlog, up from $9.4 million in Q1, underscores strong demand for its Optimus and Iron Drone platforms. Strategic partnerships, including a $14.3 million defense contract in Europe and a $3.4 million airport security deal, validate its global expansion. Additionally, the retirement of $52.7 million in convertible debt and $68.6 million in cash reserves signal financial discipline, fueling investor enthusiasm.

Aerospace & Defense Sector Gains Momentum as ONDS Leads
The Aerospace & Defense sector, led by Kratos Defense & Security Solutions (KTOS) with a 4.11% intraday gain, reflects broader optimism in defense tech. Ondas’ 20.8% surge outpaces sector peers, driven by its unique focus on autonomous drone systems and rail communications. While KTOS benefits from U.S. military spending, Ondas’ partnerships with Rift Dynamics and Mistral Inc. position it to capture emerging markets in Europe and Asia, leveraging regulatory tailwinds like the FAA’s BVLOS rulemaking.

Options and ETFs to Capitalize on Ondas’ Bullish Momentum
• RSI: 77.14 (overbought)
• MACD: 0.386 (bullish), Signal Line: 0.2595
• Bollinger Bands: Upper $3.55, Middle $2.48, Lower $1.41
• 200-Day MA: $1.398 (far below current price)

Ondas’ technicals suggest a strong short-term bullish trend, with RSI near overbought levels and MACD above the signal line. The stock is trading well above its 200-day MA, indicating momentum. For options, ONDS20250822C4 (call) and ONDS20250829C4.5 (call) stand out. The former has a 73.91% price change ratio, 10.29% leverage, and 119.78% IV, while the latter offers 61.11% price change and 12.86% leverage. Both contracts exhibit high liquidity (turnover $57,979 and $106,921) and favorable Greeks (delta 0.5979 and 0.4342, gamma 0.4520 and 0.3376).

ONDS20250822C4: Call option with $4 strike, 119.78% IV, and 73.91% price change. High liquidity and moderate delta make it ideal for a continuation of the rally. Payoff at 5% upside (4.35): $0.35 per contract.
ONDS20250829C4.5: Call with $4.5 strike, 127.53% IV, and 61.11% price change. Strong gamma (0.3376) ensures sensitivity to price swings. Payoff at 5% upside: $0.15 per contract.

Aggressive bulls should target the $4.39 52-week high, with a stop-loss below $3.86 intraday low. Watch for a break above $4.50 to confirm a new bullish phase.

Backtest Ondas Holdings Stock Performance
The 21% intraday surge in the ONDS ETF has historically led to positive short-to-medium-term gains. The backtest data shows that 50.10% of days experience a return within the first three days, rising to 46.87% over ten days and 49.70% over thirty days. The average returns are 1.91% over three days, 3.77% over ten days, and 5.76% over thirty days, with a maximum return of 7.48% on day 57 after the surge.

Ondas’ Momentum Unlikely to Slow—Act Now on Expansion Catalysts
Ondas Holdings’ 20.8% surge is underpinned by a $22M backlog, $68.6M cash reserves, and strategic alliances in defense and rail tech. The stock’s technicals and options activity suggest continued bullish momentum, with key resistance at $4.50. Investors should monitor the August 12 conference call for further guidance on 2026 expansion plans. With Kratos Defense (KTOS) up 4.11%, the sector’s tailwinds reinforce Ondas’ potential. Act now: Buy ONDS20250822C4 for a high-leverage play or hold the stock for a breakout above $4.39.