10 Penny Stocks With Unusual Options Activity This Week


What are the best Penny Stocks to buy this week?

It’s been another wild week for penny stocks and higher priced stocks. We started with an outlook on potential catalysts to watch, which have remained a priority as market activity continues. Today, for example, events that influenced the market helped generate more volatility, including comments from Fed Chairman Jerome Powell at the start of Thursday’s session. Thanks to another choppy session, traders are eating the action, and there is still a day to go.

What to watch in the stock market this week 9/5-9/9

Friday may be a lighter day on the calendar of events, but that didn’t slow things down in the stock market today. In this article, we take a look at some penny stock option chains and watch for speculative action. This continues our article: 5 Top Penny Stocks With Unusual Options Activity Today.

Penny Stocks & Options Activity

It is important to remember that not all volume is buy volume and options can be “shorted” by “selling to open” a position. This process also comes with specific rewards for traders making this type of trade, which we discuss in more detail in our article Trading Options 101: A Beginner’s Guide. If you are new to options trading, here is some information from the article that you might find useful:

“An options contract gives the buyer the option to buy or sell the underlying asset depending on the type of contract he holds. Unlike futures contracts, the holder is not obligated to buy or sell the asset if he decides not to. Each contract will have a specific expiration date on which the holder must exercise his option.

The options contract gives buyers two types of options regarding the rights that can be acquired with different options contracts: Call options give buyers options regarding the purchase of shares at a time stipulated in the future. In contrast, puts give them options to sell a certain number of shares they hold at some point in the future.

This article focuses on the options market to get a sense of potential pent-up sentiment. While high call volume or high sell volume does not necessarily indicate a bullish or bearish outlook, traders will use this data as part of their overall due diligence process. Identifying possible “big money” bets or large hedges can help add a layer of insight to any trading strategy.

10 Best Penny Stocks to Watch with Unusual Options Activity This Week

Penny Stocks to Watch

Vroom Inc. (VRM)

Shares of used vehicle e-commerce platform Vroom Inc. rebounded on Thursday. This decision comes when traders are looking for short-term stocks to buy. According to Fintel and TDAmeritrade, the current free float percentage of VRM stock is around 20%. The penny stock has come under pressure after its latest results, and some members of the Fintwit community are hoping for a squeeze. In addition to short interest, options activity also picked up. In this case, not only the calls, but also the large sales volume turned heads today.

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The short-term strikes of $1.50 expiring in September lean towards the Put side of the channel. There was also heavy volume in the October $1 put options. As for the calls, the January 2023 $2 calls saw more intense stock market action today. These mostly appear to be part of a spread strategy which involves trading both calls and puts to take advantage of certain market conditions.

Sorrento Therapeutics (SRNE)

Biotech company Sorrento Therapeutics specializes in developing therapies for things like cancer, pain, autoimmune diseases and COVID-19. This week, the company announced that it would be attending the upcoming Morgan Stanley Healthcare Conference on the 14th. The options market has already started betting ahead of that presentation. In this case, the September 16 calls to $2.50 gained the most volume in the stock market today. Whether or not this is related to the upcoming presentation is to be seen. But just days away from the 14th, it might be something to keep in mind if SRNE stock is on your watchlist.

penny stocks to buy unusual options activity Sorrento Therapeutics SRNE Action

Tellurian Inc. (TELL)

Energy stocks remain in focus due to global supply constraints and pressures on oil and natural gas prices. Tellurian provides natural gas, liquefied natural gas marketing and trading, and infrastructure. Stocks have risen significantly over the past two months, along with commodity prices. This week’s options action is leaning towards the calls and, more specifically, the $4 calls expiring on October 21st. These are considered “in the money” as TELL shares continue to trade above the $4 mark. With more concerns about the future of the energy market around the world, Tellurian could be one of the companies the market pays attention to.

penny stocks to buy unusual options activity Tellurian Inc. TELL stock

Ginkgo Bioworks Holdings Inc. (DNA)

Cell programming company Ginkgo Bioworks has been in the consolidation phase for a few weeks. However, the range has become attractive to some day traders, with shares hovering between $2.30 and around $3.80. Over the past couple of days, DNA stock has maintained a stronger uptrend and the options market appears to have reacted accordingly. On September 16, $3 calls are all the rage with over 3,700 contracts traded. There is already more substantial open interest at 6,366.

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The company recently strengthened its biosecurity platform with the acquisition of epidemiology data infrastructure assets from Baktus Inc. Ginko assumes ownership of specific proprietary datasets and software platform.

penny stocks to buy unusual options activity Sorrento Therapeutics SRNE Action

Lufax Holdings Ltd. (READ)

Chinese fintech firm Lufax Holdings hit new 52-week lows on September 8. Concerns have grown over the future of some Chinese issuers due to some uncertainty surrounding US listing requirements. Despite this case, it hasn’t stopped speculative traders from placing their bets in the options market. In this case, LU stock saw unusual activity on the March 17, 2023 $5 expiry calls. Over 11,000 contracts traded on Thursday against just 1,692 open interest. Is this an exaggerated bullish bet on the future of LU stock or a hedge to be associated with a more bearish position?

penny stocks to buy unusual options activity Lufax Holdings LU stock

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Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | news@pennystocks.com

Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | news@pennystocks.com


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