Ondas Inc (NASDAQ:ONDS) stock is up 5.6% to trade at $7.65 this morning, after the dronemaker secured a $56 million Electronic Safe & Arm Devices order for a European loitering munition program. Separately, Citizens Bank initiated coverage with an "outperform" rating and $14 price target.
Ondas stock is down 23% year to date still. The shares traded in a right range all summer, and are now a little less than halfway off their Jan. 12 record high of $15.28.
ONDS remains a short sellers favorite. Short interest is up nearly 5% in the most recent reporting period, and the 237.10 million shares sold short account for 43% of the equity's total available float.
There's also a heavy call skew. The equity's 10-day call/put volume ratio of 9.03 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 98th percentile of its annual range. Given the spike in short interest, some of this call buying could be shorts seeking an options hedge.
Today looks to be more bullish in general. The weekly 10/9 7.50-strike call is the most popular, with over 26,000 contracts changing hands in the first half hour of trading.
