A lot of people think that most companies don’t trade options when they are valued below $10.
I’m here to tell you that this is a total myth and there are actually over a thousand!
Why is that a good thing?
Because options on these stocks make up a more heavily speculated market.
In other words, Meta Platforms Inc (FB) – formally known as Facebook – right now has a lot of options activity that is not speculative.
There are tons of “unnatural” influences that could cause the stock to move unexpectedly to the up or downside.
But when you get into the options on stocks under $10, that’s where you find the real action happening.
We talk about trader sentiments a lot here, and this is exactly why it is so important especially in the “value” market.
Since sentiment fuels speculation, it has the biggest impact here…
And my Top Stocks Under $10 Most Active Options chart is designed to show you exactly where that sentiment is turning into real live speculative action.
Quantitative Specialist, Penny Hawk
May 05 2022