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!
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!
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.