A Supernova With Stock Options - InvestingChannel

A Supernova With Stock Options

Penny stocks often catch a bad rap. Infamous for guru “pump and dumps” and lack of liquidity, one could say they’ve earned this a bad reputation!

But that’s not the case when trading highly liquid stock options on explosive stocks.

Some stocks in the small-cap market can double in price – in one trading day.

When taking advantage of the power of options, one can leverage that move for a higher percentage return…

Today I’ve got my eyes on an explosive, low-priced stock, which indeed is capable of doubling in price per share…

And as of this week, we can now trade options on it!

Even Stifel, Nicolaus & Company, Incorporated has their eyes on it…

Ticker Code Ticker Name Ticker Industry Price Change Average Volume (50)*
SHIP Seanergy Maritime Holdings Corp. Marine Shipping 12.50% 96,560,033
TTNP Titan Pharmaceuticals, Inc. common stock Biotechnology -12.50% 17,685,788
GNUS Genius Brands International Inc Entertainment -98.84% 70,762,760
AAPL Apple Inc. Consumer Electronics 4.04% 33,624,722
TXMD TherapeuticsMD Inc Drug Manufacturers – Specialty & Generic 8.20% 6,864,702
AMAT Applied Materials, Inc. Semiconductor Equipment & Materials -4.91% 9,056,522
EOLS Evolus Inc Drug Manufacturers – Specialty & Generic -6.05% 1,263,920
KTOV KITOV PHARMA LT/S ADR Biotechnology -2.17% 22,241,914
OMER Omeros Corporation Biotechnology 4.88% 417,594
FREQ Frequency Therapeutics Inc Biotechnology -1.02% 178,629
HSITF Hadasit Bio Holding Ltd. Biological products, except diagnostic 0.00% 3
PETS Petmed Express Inc Pharmaceutical Retailers -5.59% 668,836
NVIV Invivo Therapeutics Holdings Corp Biotechnology -1.20% 695,497
IBIO Ibio Inc Biotechnology -20.71% 11,551,040
HTZ Hertz Global Holdings Inc Rental & Leasing Services 27.18% 96,508,388
SLS Sellas Life Sciences Group Inc Biotechnology -10.03% 237,158
PENN Penn National Gaming, Inc Resorts & Casinos -34.13% 18,556,078
STX Seagate Technology PLC Computer Hardware -5.44% 2,318,372
CVS CVS Health Corp Healthcare Plans -5.34% 7,621,406
CREX Creative Realities Inc Software – Application -23.92% 3,438,844

Options on small-cap stocks have been hot lately. In fact, my first 1,000% win of this month was on DGLY call options, and DGLY is a $4 stock!

I trade options on these lower-priced stocks in order to define my risk ahead of time, and leverage my money.

Let’s just say that over the past couple months, trading options on lower-priced stocks has paid quite a few bills!

Recently, Genius Brands International (NYSE: GNUS), one of Wall Street’s hottest small-cap stocks, had options made available on it to retail traders, such as you and me.

Upon options being made available to retail traders, unusual options activity on this stock became very active. I was able to catch a piece myself, and may look to do the same today.

With options made available only a few short days ago, I expect options on GNUS to remain active and highly liquid into the end of the week as well!

GNUS Daily Chart

My trading plan on GNUS is very simple today…

As of right now GNUS is basing off its 20-day simple moving average line, shown in green in the chart above.

With $5/share being resistance, a break above $5 and it could run as high as $10/share… This is what many traders refer to a “Supernova” line. If that line is taken out to the upside, it can create what is known as a “Supernova” stock.

Therefore, if GNUS can trade above $5/share, I’ll be interested in making a bullish trade on it.

If GNUS trades below its 20-day simple moving average line, I’ll be interested in making a bearish move.

Small-cap stocks can be very volatile, but by using options, I can define my risk before I make a trade. Therefore, I’ll keep an eye on potential unusual options activity (which increases liquidity) to convince me into making a move on this one.

If I do initiate a trade on GNUS today, you’ll be notified via email!

Let me know how you do today!

P.S. I’ve posted eight brand new video lessons to this channel in the past five days alone. Make sure you have notifications on!

Yours for TrackStar trading,

Davis Martin
America’s #1 Premarket and Day Trader

Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.

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