When you think about penny stocks, rarely do options come to mind. That’s at least according to some traders in the stock market today. One of the reasons they’re buying penny stocks in the first place is to leverage small sums of money in exchange for more significant upside potential. Options are a cheaper way that investors can theoretically control more shares of higher-priced stocks without having the capital requirements to do so.
Believe it or not, many penny stocks also have options. Used as a speculative asset, some traders will look at options statistics to gauge bullish or bearish sentiment in specific stocks. Today we look at a few penny stocks with unusually high levels of Call buying activity. While this is not a guarantee that the underlying stocks will go up, it may be something to account for as you research the best penny stocks to buy based on retail sentiment.
Best Penny Stocks To Buy?
- Camber Energy Inc. (NYSE: CEI)
- FuboTV Inc. (NYSE: FUBO)
- Tilray Brands Inc. (NASDAQ: TLRY)
- Mullen Automotive Inc. (NASDAQ: MULN)
- Paysafe Ltd. (NYSE: PSFE)
Penny Stocks, Options Trading, Best Stocks To Buy
It doesn’t necessarily matter the price of the stocks you’re looking to buy. It’s more about the strategy you use to formulate your trade thesis. Regarding options volume, you can see things like Open Interest (O/I), volume, and if the volume is for specific strike prices with Calls or Puts. Generally speaking, an immediate assumption is that higher Call volume means traders are bullish, and Put volume means traders are bearish. But just like stocks, you can also “short” or “sell to open” your trade. Different options trading strategies allow you to take advantage of specific trends.
Whether it’s collecting a premium when stocks go down or capitalizing on sideways trading trends, options offer various ways to make money in the stock market. For this reason, it’s essential to understand that the face value of high Call or Put volume doesn’t necessarily mean a bullish or bearish move will come next. However, this data can come in handy from a more general stance and assuming you’re going to use more than options volume as your gauge to trade penny stocks. Today, we look at a handful of penny stocks with unusually high Call volume. Are they a buy?
1. Camber Energy Inc. (NYSE: CEI)
Energy stocks are heating up again. Even with the stock market down this week, you can count more than a few energy penny stocks on the rise. Camber Energy is one of these cheap stocks to watch and has become somewhat of a fan favorite among retail traders.
What does Camber Energy do? The company provides energy and power solutions to North American energy clients. The company has interests in US oil and natural gas assets and has remained a focus for those looking for cheap energy stocks to trade.
This week, shares of CEI stock have made a substantial rebound with the rest of the sector. On Friday, the…