Looking For Penny Stocks to Buy? Have You Looked At the Options Yet?
There are plenty of ways to find penny stocks to buy. You could hunt for momentum using a penny stock screener. You could play the stock market game by analyzing social sentiment. There are also ways to find names to add to your watch list based on other factors, including data.
This article looks at stock market data related to the options market. While the goal isn’t to find options trades, it is a strategy to help identify unusual activity that could be relevant to an underlying stock.
This update continues our list of penny stocks from the article 7 Hot Penny Stocks With Unusual Options Activity, Time To Buy?” and focuses on a few companies experiencing an uptick in trading volume in their options chains.
We’ll focus on the options data, which strike prices are of particular interest, and how near-term or long-term the contracts are so you can decide how to use that data to your advantage. We also peek at potential catalysts that could have contributed to any recent underlying momentum.
Penny Stocks To Watch With Unusual Options Action
- Ardagh Metal Packaging (NYSE: AMBP)
- SomaLogic Inc. (NASDAQ: SLGC)
- Opendoor Technologies Inc. (NASDAQ: OPEN)
Ardagh Metal Packaging (NYSE: AMBP)
At the beginning of the month, we introduced Ardagh Metal Packaging. The sustainable metal beverage can producer caught attention thanks to stronger earnings. Its global beverage can shipments grew by 9% in the quarter, with a growth of 10% in the Americas and 9% in Europe. Adjusted EBITDA dropped 15% thanks to higher input costs but was also one of the points of focus for the company’s active approach to managing costs.
Despite some analysts lowering price targets, ratings remain bullish. Barclays recently maintained its Overweight rating on the penny stock and currently has a $6 target. BMO Capital, however, downgraded the stock last week to a Market Perform but maintained a price target higher than the latest trading levels.
The company hasn’t announced many new developments. However, a much higher-than-average day of trading volume on Thursday seems to have prompted more interest in the penny stock. AMBP saw more than 5.19 million shares exchange hands. That is nearly five times the average daily volume this stock has seen.
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In addition to the unusual trading volume, there’s also some unusually high activity in the options chain for AMBP stock. Specifically, the December 16th expiration $5 strike Call options saw over 8,800 contracts traded compared to just 334 open interest contracts. This significant jump in seemingly bullish options trading could be something to monitor if AMBP stock is still on your list of penny stocks to watch in November.
SomaLogic Inc. (NASDAQ: SLGC)
Like AMBP, SomaLogic stock experienced a much higher-than-average trading volume on Thursday. With more than 3.2 million shares traded, that was nearly three times the daily average volume for the last 30-days.
The health-management technology company recently teamed up with Molecular Genomics to bring its 7,000-Plex SomaScan platform to Asia. CEO Wong Lin Sheng explained in a November 8th PR, “Together with our existing genomics and single-cell analysis services, we will be able to provide an unparalleled multi-omics service platform to customers in Southeast Asia and beyond.”
The SomaScan Platform was built as a platform that can be applied across research and discovery, translational research, biopharmaceutical development, and clinical applications. It can run roughly 7,000 protein measurements on a single 55-microliter plasma or serum sample.
This week SomaLogic’s platform could gain some attention. It was used to collect plasma samples and clinical data as part of OncoHost’s PROPHETIC clinical trial. OncoHost presents its proteomics-based biomarker model for clinical benefit to immunotherapy in non-small cell lung cancer. Its model is based on “proteomic profiling of pre-treatment blood samples, combined with machine learning analysis that accurately predicts clinical benefit probability at twelve months, outperforming the predictive capabilities the existing PD-L1 biomarker. The study was conducted using OncoHost’s first-of-its-kind PROphet® platform,” ad it will be presented as a poster at the Society for Immunotherapy of Cancer’s 37th Annual Meeting this week.
In line with current events, SLGC stock options volume has seen some unusual activity. Next Friday’s November 18th expiration, in-the-money $2.50 Call options are gaining the most volume. 4,000 contracts were traded against open interest of over 8,700 at the time of this article.
Opendoor Technologies Inc. (NASDAQ: OPEN)
eCommerce real estate company, Opendoor has imploded since its IPO. But after reaching new all-time lows earlier this week, some traders appear to have grown more bullish on the beaten-down penny stock. With some apparent clarity on inflation (for now), some speculate that there’s been a break in the action as far as the housing market’s decline is concerned. We’ll likely get more clarity on that with the next round of housing data coming in the near future.
In their third-quarter results, CEO Eric Wu spoke directly to the unique landscape this real estate market has seen, “Navigating a once-in-forty-years market transition has required us to operate with urgency and discipline to manage risk and overall inventory health. In the third quarter, we accelerated the resale velocity of our existing inventory and have significantly increased spreads on new acquisitions.” Wu continued, “These actions ensure we are prioritizing sell-through to improve the health of our inventory on a resale basis, and that our post-Q2 acquisition cohorts are positioned to perform inline with our contribution margin targets.”
Thanks to better-than-expected October CPI data, there’s been a bit more optimism in some of the notable names that have “fallen from grace,” so to speak. OPEN stock has managed to bounce back above the $2 level and with much higher-than-average trading volume over the last three sessions. In addition to this, the options market has woken up as well. December 9th’s $2.50 strike Calls are where the unusual activity sits today. More than 3,000 contracts traded compared to just 785 open interest. Whether or not it’s a bullish bet is to be seen. But for now, some speculate that it could finally be a penny stock to watch.
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10 Penny Stocks To Watch With Unusual Options Activity
This update continues our list of penny stocks from the article 7 Hot Penny Stocks With Unusual Options Activity, Time To Buy?” You can check out that article in its entirety, and for the complete list of penny stocks, we’ve included it below.
- Ardagh Metal Packaging (NYSE: AMBP)
- SomaLogic Inc. (NASDAQ: SLGC)
- Opendoor Technologies Inc. (NASDAQ: OPEN)
- Marinus Pharmaceuticals Inc. (NASDAQ: MRNS)
- Olaplex Holdings Inc. (NASDAQ: OLPX)
- Nu Holdings Ltd. (NYSE: NU)
- Bed Bath And Beyond (NASDAQ: BBBY)
- Kinross Gold Corp. (NYSE: KGC)
- Redfin Corporation (NASDAQ: RDFN)
- Growgeneration Corp. (NASDAQ: GRWG)
