Want to identify trends early? It would help if you went beyond the daily headlines. By the time the news hits, it could be too late. Are there still opportunities when penny stocks release news? Of course, but how do some traders put together a watch list based on total speculation? If they’re correct, it could become a considerable windfall, and if they’re wrong, the apparent result is a loss. Right now, we’re seeing unique trends in the retail market that involve things like short float data, insider buying activity, and, as we discuss today, penny stocks with unusual options activity.
10 Top Penny Stocks To Watch
- Vinco Ventures Inc. (NASDAQ: BBIG)
- RLX Technology Inc. (NYSE: RLX)
- Hycroft Mining Holding Corporation (NASDAQ: HYMC)
- DiDi Global Inc. (NYSE: DIDI)
- Uxin Limited (NASDAQ: UXIN)
- IronNet Inc. (NYSE: IRNT)
- Vroom Inc. (NASDAQ: VRM)
- Vislink Technologies Inc. (NASDAQ: VISL)
- Aterian Inc. (NASDAQ: ATER)
- BitNile Holdings Inc. (NYSE: NILE)
Best Penny Stocks To Buy Right Now
So what is it about options volume that would prompt traders to become interested? The simplistic approach to looking at options flow data involves identifying either irregularity (higher volume than open interest), high activity (significant volume or open interest), or large trade sizes. In general, when the Call side of the options chain is favored, some speculate on the bullish potential. When it comes to strength in Puts, then traders might take that as a bearish stance.
Just because there are unusual trades on either side of the chain, there aren’t guarantees that a move will result in textbook fashion. There are still many things to account for, so make sure you research beyond simple options data. For now, however, we look at 10 top penny stocks with unusual activity today. Will they move the way the options chains suggest?
1. Vinco Ventures Inc. (NASDAQ: BBIG)
Shares of Vinco Ventures have been off and on plenty of penny stocks watch lists over the last several months. The company initially hit scans as it firmed up a deal to compete with TikTok and lately has been in focus for a proposed crypto spinoff, Cryptyde, Inc.
The last few days have been explosive for BBIG stock as prices jumped from below $2.50 last Friday to over $3 this week. The move came in concert with the broader cryptocurrency price momentum that began over the weekend.
There are many expiration dates to consider in looking at the options flow. Today we look at the April 14th Call options. Not only is there significant open interest throughout the chain, but today’s volumes have also shown more significant activity. Some strikes show contract volume in the 3,000+ range.
2. RLX Technology Inc. (NYSE: RLX)
RLX stock is also in the spotlight for some interesting options activity today. Thanks to a surge in momentum for China-based stocks resulting from Alibaba’s buyback news, sympathy sentiment has played a part during the Tuesday session. RLX specializes in branded eVapor products.
While concerns have grown surrounding eCig/eVapor companies, RLX has managed to expand. In its recent Q4 and full-year financial update this month, RLX reported more robust revenue growth over 2020 and an uptick in non-GAAP net income & gross margins.
What does the RLX options chain show? The April 14 expiration Calls are also in focus. Open interest is significantly higher on the Calls side vs. Puts. Meanwhile, Tuesday saw heavy volume in the $2.50 strike Calls, with more than 9,800 traded at the time of this article.
3. Hycroft Mining Holding Corporation (NASDAQ: HYMC)
One of the latest meme stocks to watch is Hycroft Mining. Shares of the mining company began jumping earlier this month following some preliminary operating results that were released in February. We discussed the company after it had caught the attention of retail traders and have followed the developments closely.
One of the more recent head-turning updates came in tandem with another meme stock, AMC Entertainment (NYSE: AMC). The company announced that it had invested in HYMC stock and obtained a board seat to help the young company grow. As this has been the case, retail traders placed this on the list of penny stocks to watch, and the options chain may show some additional insight.
Once again, the April 14th expiration date options are in focus. As of this article, there is significant open interest on the Calls side of the chain. Meanwhile, the $2.50 strikes have received the most action in the stock market today.
4. DiDi Global Inc. (NYSE: DIDI)
Similar to RLX, DiDi may have gained some additional sympathy momentum thanks to attention on Chinese stocks. The company known as the Uber of China has battled with cost-cutting issues and even went as far as recently slashing its ride-hailing staff by up to 15%. One of the things putting brakes on DiDi’s growth has been the Chinese government’s stance on tech start-ups. A plan to list on the Hong Kong exchange was also postponed thanks, in part, to the company failing to satisfy China’s concerns over a data leak.
But those initial concerns seem to have subsided (for now). Looking at the options chain for DIDI stock, you’ll see some interesting activity in the April 14th $6 strike Calls. In particular, open interest sits at 235. However, the volume for the day is over 5,000 contracts as of this article.
5. Uxin Limited (NASDAQ: UXIN)
Another China-based name, Uxin Limited, has climbed over the last trading week. UXIN stock is up over 60% since last Tuesday, thanks to upbeat sentiment on Chinese stocks. The Chinese used car dealer may have also recently benefited from the rise in price and demand for automobiles. Next week, the company is set to report Q3 earnings for its fiscal 2022 year.
As far as last quarter is concerned, Uxin realized higher transaction volume both quarter over quarter and year over year for the period. It also saw an increase of 24.5% in total revenue compared to the previous quarter.
Looking at the options flow for UXIN stock right now, you’ll see the unusual action in the April contracts. Specifically, the April 14 $2 strike Calls options went into the session with 771 contracts of open interest. As of this article, more than 4,300 contracts were traded.
More Penny Stocks Options Data To Digest
We’ll round out this list of penny stocks with a few more unusual options activity names:
6. IronNet Inc. (NYSE: IRNT)
Popular cybersecurity name, IronNet saw much more near-term action in the March 25 expiration Call Options. In this case, the $5 strike contracts recorded nearly as much volume as open interest at the time of this article.
7. Vroom Inc. (NASDAQ: VRM)
Used car eCommerce company Vroom Inc. has some interesting options activity to note. Not only was there a high level of volume in the April 14 $5 strike Calls on Tuesday, but the open interest for the same contract also sits at nearly 60,000 in open interest.
8. Vislink Technologies Inc. (NASDAQ: VISL)
Communications company and part-time drone stock Vislink Technologies has caught a boost recently thanks to a jump in surveillance stocks. It isn’t only the VISL stock price seeing action. It’s also the options market as well. Right now, the April 14 $1.50 strike Calls are where the unusual activity sits. The volume is more than double that of the open interest in the contract right now.
9. Aterian Inc. (NASDAQ: ATER)
Another eCommerce company, Aterian, is catching attention in the stock market today. It specializes in using artificial intelligence and data analytics to manage products across online marketplaces like Shopify, Amazon, and Walmart. The ATER $3 call options expiring on April 14 are the ones in question today. There are only 233 contracts listed for open interest. Meanwhile, more than 4,900 have traded today.
10. BitNile Holdings Inc. (NYSE: NILE)
Shares of BitNile have jumped this week thanks to news of the company’s latest electric vehicle charging business spinning off and going public. In nearly a month, this sparked a jump in NILE stock to some of the highest levels. While volume isn’t necessarily as unusual as some of the other names on this list of penny stocks, it may be worth noting if NILE stock is one you’re watching. In particular, the April 14 expiration $2.50 strike Calls are in focus. There are more than 9,000 contracts of open interest, with nearly 4,000 traded as of this article.
Options Risk & Reward
The rewards are clear, but the risks can be immense. Since prices fluctuate, implied volatility changes, and time decay plays a role (all things we discuss in our Options 101 article), the option’s value can fluctuate rapidly. This is why only specific traders with plenty of education in trading options choose to jump into these wild waters.