Subscribers to Schaeffer's Weekend Trader options recommendation service received this ZS commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this NET commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

Cybersecurity stock Cloudflare Inc (NYSE:NET) pulled back and bounced near its earlier all-time high breakout and 20-day moving average. Now the equity is above open interest (OI) balance at the 190-strike and peak call level, and could run call stack towards the 220-strike by July expiration. In other words, this gives NET a decent chance to hit our targets.

 

 
Looking toward the options pits, an unwinding of bearish sentiment could trigger tailwinds. NET's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 72% of readings from the past year.
 
Options are affordably priced, per the stock's Schaeffer's Volatility Index (SVI) of 43% that ranks in the 14th percentile of its annual range, implying that options players are pricing in lower-than-usual volatility expectations. Plus, the security's Schaeffer's Volatility Scorecard (SVS) sits at 80 out of 100, meaning it has tended to exceed volatility expectations during the past year.
 
Our recommended September call has a leverage ratio of 5.2 and will double in value on a 21.6% pop in the underlying equity.

Schaeffer's Investment Research turns 44 this month! We are the same age as Kim Kardashian and Justin Timberlake. We want to thank our loyal subscribers and readers for joining us on this journey within the options industry. To show our gratitude, we released a free report on our Top Stock Picks to buy (and hold) for the rest of 2025. Below is a snippet, but click here to access the entirety of the report.

Disclaimer: The levels discussed were taken from an AMD chart on July 1, so price action may have shifted the chart.

Chip powerhouse Advanced Micro Devices Inc (NASDAQ:AMD) is still on a warpath after taking out Intel (INTC). It's now looking at Nvidia (NVDA) and gaining ground on the artificial intelligence (AI) front quickly. There is a strong, long- term uptrend on the weekly chart, with a trendline of higher lows since December 2018. The stock reclaimed its 200-week (green) and 52- week (blue) moving averages, as well as half its all-time high. at $113.65.

The shares also took out the 50% Fibonacci retracement of their Dec. 18 low and record high, at $121, breaking above a trendline of descending highs. Plus, the 20- week moving average is turning higher.

Through the August series, peak put open interest (OI) is at $110, while heavy put OI is at $115, $120, and $125. There is a pause near peak call OI at $130, right now, but a breakout could kick off a spike through several deep- out- of- the- money strike calls ($155 and $160), prompting market makers to adjust their hedges and potentially add to the rally. The last significant call OI strike is at $200. The stock is a buy down to $110 and up through $140.

Schaeffer's Investment Research turns 44 this month! We are the same age as Kim Kardashian and Justin Timberlake. We want to thank our loyal subscribers and readers for joining us on this journey within the options industry. To show our gratitude, we released a free report on our Top Stock Picks to buy (and hold) for the rest of 2025. Below is a snippet, but click here to access the entirety of the report.

Disclaimer: The levels discussed were taken from an AMZN chart on July 1, so price action may have shifted the chart.

E- commerce giant Amazon.com Inc (NASDAQ:AMZN) made a big move in the spring to reclaim its 2020-2021 range highs on the monthly candle. The market is potentially undervaluing what artificial intelligence (AI) can do for Amazon Web Service (AWS) revenue streams, and the benefits could provide a big boost for the stock when earnings roll around.

In the options pits, we're seeing deep in-the-money December 270 puts being sold and December 270 being bought in bulk, which means there are big players potentially positioning themselves for a year-end rally. Premium is affordably priced as well, with AMZN's Schaffer's Volatility Index (SVI) coming in at the 8th percentile of its annual range.

Delta Air Lines Inc (NYSE:DAL) stock is up 12.4% to trade at $56.99 today, after the airliner's top-line beat for the second quarter. More importantly, CEO Ed Bastian told CNBC that bookings have stabilized after lower demand in the spring, and Delta's profit outlook for 2025 has been reinstated. The report has sent tremors through the airline sector. 

American Airlines Group Inc (NASDAQ:AAL) stock is 14% higher to trade at $13.13, last seen trading at its highest level since early March. While the shares are down 25% year-to-date, they are now 51% off their April 4 multi-year low of $8.50. Keep an eye on AAL's 200-day moving average today, which so far is capping the rally.

AAL calls are all the rage today, with 286,000 changing hands at last check, volume that's 4 times the average intraday amount. The weekly 7/11 12.50-strike call is the most popular, as is the July 13 call in the standard expiration series. 

United Airlines Holdings Inc (NASDAQ:UAL) stock is 14.2% higher to trade at $91.57, eyeing its highest close since March 4. Now only down 6.5% in 2025, the shares are 92.4% higher year-over-year, and today's gap has cleared their 160-day moving average.

At last check, 78,000 UAL calls have changed hands, volume that's quadruple the average intraday amount. Leading the charge is the weekly 7/11 87-strike call, but the July 90 call is a close second.

Sensing a pattern here? Airline stocks travel in packs. DAL, AAL, and UAL have high Schaeffer's Volatility Scorecard (SVS) readings, checking in at 99, 93, and 96 out of 100. This means they have tended to exceed options traders' volatility expectations in the past year -- a boon for would-be premium buyers.

EQT Corp (NYSE:EQT) is down 1.5% at $54.06 at last glance, extending a pullback from its June 23, record high of $61.02. The security still boasts a 17.4% year-to-date lead, and support at $52 looks ready to contain any additional losses. What's more, a historically bullish signal flashing may help EQT partially reverse this recent pullback.

According to Schaeffer's Senior Quantitative Analyst Rocky White, EQT is within one standard deviation of its 126-day moving average. Shares were above this this trendline in at least eight of the last 10 trading days, and spent 80% of the past two months above it. Within these parameters, five other signals occurred in the past five years, after which the equity was higher one month later 60% of the time, averaging a 7.1% gain. 

Short-term options traders have been much more bearish than usual. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.36, which ranks in the 92nd percentile of annual readings. An unwinding of this pessimism could create additional tailwinds for EQT.

Options look like an affordable route for those looking to benefit from the security's next moves. This is per the stock's Schaeffer's Volatility Index (SVI) of 33%, which sits in the 9th percentile of its annual range. This means options traders are pricing in low volatility expectations.

Advanced Micro Devices Inc (NASDAQ:AMD) shares are up 3.1% to trade at $142.69 at last check, after an upgrade from HSBC to "buy" from "hold" to go with a price-target hike to $200 from $100. The analyst in coverage noted the company could see significant upside to its artificial intelligence (AI) revenue in 2026.

There is still room for upgrades, with 12 carrying a "hold" rating. What's more, the 12-month consensus target price of $136.57 is a 5.4% discount to current levels, leaving the door wide open for price-target hikes.

AMD -- which hasn't traded at $200 since March 2024 -- is on track for a third-straight win, brushing off broader market weakness amid global trade tensions. The equity sports a 17.9% year-to-date lead, and is not too distant from its June 27, year-to-date high of $147.27. 

Short-term options traders lean much more bearish than usual. This is per the security's Schaeffer's put/call open interest ratio (SOIR), which sits in the 83rd percentile of annual readings. An unwinding of this pessimism could create additional tailwinds for Advanced Micro Devices stock.

Drilling down to today's options activity, 295,000 calls have already crossed the tape so far today -- double the volume typically seen at this point -- compared to 126,000 puts. Most popular is the weekly 7/11 145-strike call, where new positions are being bought to open.

Drone technology is soaring to new heights in 2025. Once limited to niche military or hobbyist use, drones are now becoming essential across a wide range of sectors -- from defense and public safety to agriculture, logistics, and infrastructure inspection. Global demand is accelerating, and so is investor interest. One telling sign? New drone-focused IPOs like AIRO Group Holdings, Inc. (NYSE: AIRO) have entered the market with impressive momentum.

In China alone, more than 2.2 million drones are currently registered, and the country is positioning the drone industry as a pillar of its “low-altitude economy,” which could reach approximately $490 billion by 2035. Meanwhile, in the U.S., the combination of geopolitical tensions and favorable policy support is catalyzing a new era of drone innovation and commercialization.

Notable NYSE- and NASDAQ-Listed Drone Stocks

Here’s a current list of notable drone-related stocks trading on U.S. exchanges. If you're building a stock watchlist, these are some of the best drone stocks to keep an eye on:

1. AeroVironment Inc (NASDAQ: AVAV)

2. Kratos Defense & Security Solutions Inc (NASDAQ: KTOS)

3. Draganfly Inc (NASDAQ: DPRO)

4. Ondas Holdings Inc (NASDAQ: ONDS)

5. EHang Holdings Ltd (NASDAQ: EH)

6. Red Cat Holdings Inc (NASDAQ: RCAT)

7. AIRO Group Holdings Inc (NYSE: AIRO)

8. L3Harris Technologies Inc (NYSE: LHX)

9. Cohu Inc (NASDAQ: COHU)

10. Palantir Technologies Inc (NYSE: PLTR) – partial exposure

11. Axon Enterprise Inc (NASDAQ: AXON) – partial exposure

Top Performers in 2025

AIRO Group (NYSE: AIRO) has been the standout performer in 2025 so far. The company, which went public on June 13, saw shares jump approximately 140% on its first day of trading. This surge is attributed to investor excitement around AIRO’s military-grade autonomous drones and its role in defense tech solutions amid global conflict zones.

AeroVironment (NASDAQ: AVAV) has also experienced a resurgence, rebounding from earlier-year lows thanks to demand for its tactical drones like the Switchblade, widely used in Ukraine. Positive forecasts for upcoming quarters have further supported its stock.

Kratos Defense (NASDAQ: KTOS) continues to perform steadily, benefiting from U.S. defense contracts. Its jet-powered Valkyrie drone, developed under the loyal wingman program, showcases the cutting-edge of unmanned aerial combat.

Ondas Holdings (NASDAQ: ONDS) has shown promising growth due to strategic partnerships with AI firms like Palantir. These collaborations aim to bring advanced autonomy and data collection to industrial drone operations.

Why the Momentum?

Several key factors are fueling the momentum in the drone sector. Geopolitical conflicts have significantly increased global military spending, with drones playing a central role in modern warfare strategies. Beyond defense, the commercial expansion of drones is also a major driver. They are increasingly used in diverse applications such as crop spraying, bridge inspections, traffic monitoring, and even last-mile delivery services, demonstrating their versatility and efficiency.

Regulatory support has further strengthened the sector, especially in the U.S., where executive orders and evolving FAA guidelines are creating an environment conducive to drone integration in both urban and rural settings. Finally, ongoing technological innovation is transforming drones into intelligent, scalable systems. Advances in artificial intelligence, LiDAR sensing, and 5G connectivity are enhancing drone autonomy, data processing capabilities, and operational range, making them more attractive for large-scale deployment.

Outlook for the Drone Sector

The global drone market is expected to grow at a compound annual growth rate (CAGR) of 14.3% from 2025 to 2030, with the commercial drone market expanding at over 20% CAGR through 2032. Analysts predict that companies with diversified offerings—spanning military, industrial, and software integration—will be best positioned to capture sustained market share.

While risks remain—including regulatory bottlenecks, international competition, and technological obsolescence—the drone sector is clearly on a long-term upward trajectory. With growing demand, new listings, and massive market projections, drone stocks are firmly on investor radar for 2025 and beyond. For investors looking to expand their stock watchlist with high-growth potential, the best drone stocks offer both innovation and resilience.

Streaming name and Schaeffer's Top 2025 Stock Pick Roku Inc (NASDAQ:ROKU) is up 0.8% to trade at $89.33, after landing an upgrade out of Keybanc to "overweight" from "sector weight" to go with a $115 price target. The brokerage firm cited the company's budgeting and advertising updates as potential tailwinds. Last night, Piper Sandler hiked its own price target to $84 from $65. 

ROKU initially traded as high as $91.66 today, its highest level since February, but has since pared those gains and continues to consolidate below $90. The shares have added 70% since their April bottom of $52.43 and are now up 19% year-to-date.

Short sellers have been rolling back, with short interest down 16.6% during the past two reporting periods. Yet the 7.67 million shares sold short still accounts for 6% of the stock's total available float, so short covering could break through that short-term ceiling at $90.

Options are looking affordable as well. This is per ROKUs Schaeffer's Volatility Index (SVI) of 41%, which sits in the 1st percentile of its annual range. This indicates options traders are pricing in low volatility expectations.