What Are The Best Penny Stocks To Buy Right Now?
It is another wild session in the stock market today, with penny stocks ruling the headlines. Some of the most extensive short squeezes and bullish breakouts have happened over the last few weeks. While HKD and AMTD stock have been surging to the tune of thousands of percentage points. Here are a few articles to check out if you’ve missed the memo:
- 4 Penny Stocks To Watch After HKD Stock Explodes Over 2000%
- Best Penny Stocks to Watch Premarket August 2nd, AMTD Stock & More
Then you had more trends stemming from these breakouts, focusing on short squeeze penny stocks, low float penny stocks, and Chinese/Hong Kong tech stocks. Tuesday’s session is no different, and stocks under $5 are still in a very bright spotlight. Applied DNA Sciences (NASDAQ: APDN), for example, skyrocketed early on a major update.
Why APDN Stock Is Up Today
Applied DNA announced that it began analytical validation of a PCR-based monkeypox virus test specific to monkeypox. If the company validates the test, a package will be submitted to the New York State Department of Health for approval.
“Based on our experience with the COVID-19 pandemic, we are keenly aware of the crucial role PCR-based diagnostic tools can play in responding and helping to control public health outbreaks. With a proven workflow and testing services born of COVID-19, upon test approval, ADCL stands ready to apply its testing capacity in service of New Yorkers’ health,” stated Dr. James A. Hayward, president and CEO of Applied DNA Sciences.
Penny Stocks To Watch
Not only is APDN stock running from news catalysts, but it’s also one of the low float penny stocks already on the radar after the last few sessions of bullishness for the micro-niche. Other than perking up interest in APDN stock, it has continued boosting appeal for traders looking for the next round of multibagger penny stocks to buy. Today we look at a few more gaining momentum thanks to a small- and micro-cap stock bull rally this quarter.
- Ginkgo Bioworks Holdings (NYSE: DNA)
- Bluebird Bio Inc. (NASDAQ: BLUE)
- Transocean Limited (NYSE: RIG)
- Ironnet Inc. (NASDAQ: IRNT)
Ginkgo Bioworks Holdings (NYSE: DNA)
One of the Cathie Wood penny stocks to watch this year has been Ginkgo Bioworks. One of Wood’s funds, Ark Innovation (NYSEARCA: ARKK), has a position in DNA stock worth about $200 million as of this article. It has also been a company we’ve followed closely since the stock slipped into penny stock territory this year.
Several developments have come to light, prompting a more bullish stand on the penny stock. Whether it was the continued support of the Operation Expanded Testing program with the U.S. CDC or the latest deal to acquire Zymergen Inc. (NASDAQ: ZY), there’s no shortage of recent updates.
What might have traders focused on DNA stock today is some unusual activity in the options market. Yes, some penny stocks have options, and just like higher-priced stocks, irregular activity can spark speculative and sentiment-based trading. As far as the DNA stock options chain goes, it isn’t today’s volume as much as it is the string of open interest that has turned a few heads.
The August Calls alone have more than 25,000 total open contracts compared to far less than that on the puts side of the chain. This trend continues through almost every expiration date through January 2024. Whether or not this is truly a bullish sign is to be seen. For now, however, it has prompted some optimism in the stock market today for DNA stock.
Bluebird Bio Inc. (NASDAQ: BLUE)
Like DNA stock, Bluebird Bio also has some interesting options statistics to consider. Its options chain favors Call open interest compared to puts at or greater than 2:1 at most expiration dates. This week, analysts at Raymond James also gave the biotech company an upgrade to Outperform. The firm announced an $8 target to pair with the new rating. Considering that’s roughly 100% higher than current levels, Raymond James appears bullish on the company.
Bluebird Bio made headlines earlier this summer after the FDA’s Advisory Committee unanimously backed its gene therapy for a rare blood disorder. If approved, the treatment (beti-cel) will become the first potentially curative gene therapy for beta-thalassemia. The same committee endorsed approval of Bluebird’s other gene therapy, elivaldogene autotemcel (eli-cel) a day prior. The treatment is for a rare neurological disease and came into focus despite concerns that the treatment may cause cancer.
This month could be an important one for BLUE stock. That’s because a PDUFA goal date is set for August 19th. The question is, will options traders’ bets be right about the penny stock?
Transocean Limited (NYSE: RIG)
You will notice this unusual options activity trend throughout the article, and Transocean is part of it. From the most near-term expiration date, August 5th, to November 18th, Call activity is heightened. Both Open Interest and today’s trading volumes are building steam.
Energy stocks are red hot this quarter, and Transocean is gaining momentum. This week the company announced its latest development. The company’s Deepwater Conqueror drillship was awarded a two-year contract valued at $321 million. This was in addition to announcing a $915 million agreement for its ultra-deepwater Petrobras 10000, which received a 5.8-year contract for offshore work in Brazil.
Given the more than $1 billion in new contracts in addition to a strong energy market & bullish options activity, RIG stock could be one on the watch list right now.
Ironnet Inc. (NASDAQ: IRNT)
While most of the names on this list of penny stocks have unusual options activity for near and longer-term timeframes, Ironnet’s is very much near-term. The August 5th (Friday) $2.50 strike Calls are the ones in question today. More than 5,500 contracts were traded compared to just 841 Open Interest contracts.
The cyber defense technology company recently inked a deal with Brookdale Community College to protect it against cyberattacks. “The education sector is now a primary target for cyber attacks, putting our next generation at risk. We need leaders across school districts, colleges, and universities to work together to protect this critical sector from further attacks,” said General (Ret.) Keith Alexander, co-CEO and founder of IronNet. “As a top community college in the U.S., Brookdale is taking a proactive stance against bad actors by partnering with IronNet to not only defend its networks against real-time attacks but also strengthen the security posture of the entire education community.”
Cybersecurity stocks have come back into focus in light of the latest cyberattack on Taiwan’s presidential office ahead of Nancy Pelosi’s visit. Whether or not the bullish options activity is tied to this sentiment is a guess at this point. But, for now, it may be something to keep in mind if IRNT stock is on your watch list.