Are You Looking For The Best Penny Stocks To Buy Now? Take A Peek At Unusual Options Activity
If you’re hunting for the best penny stocks to buy right now, you’ve got your work cut out for you. Is it difficult? No, but it does require a bit of work on your part. Research and due diligence are necessary; even more, you’ve got to understand the type of trader you are.
What is your risk tolerance, and what is your strategy behind entering the trade? Are you day-trading penny stocks and looking for short-term gains? Does swing trading apply more to your specific plan, or are you looking for penny stocks to invest in for the long term? The answers to these questions will help you decide if certain stocks are worth taking a closer look at.
Are there ways to find top penny stocks to watch? Of course, and there are plenty of ways to do so. You could look for insider trading, irregularly high volume, or, in today’s article, we look at penny stocks with unusual options activity. We’ve discussed this type of strategy in the past, and many have said they enjoy this type of alternative data.
But make sure you understand that just because there are higher levels of Call or Put buying doesn’t guarantee stocks will rise or fall. At the very least, it can give some insight into what some traders are doing to hedge positions or add a bit more risk-on to their trading game plan.
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Penny Stocks To Watch With Unusual Options Action
Cronos Group (CRON)
Cannabis stocks have been hot and cold over the last few weeks. However, things have been a bit warmer than cooler since October. Midterm elections helped give much-needed attention back to marijuana stocks in general. Now the market speculates on what comes next. Cronos Group has been in the spotlight for years, and long-term investors have certainly gone through their share of volatility.
November has been a very active month, mainly due to legislative steps being taken now. Earlier this month, a joint memo published by Democrats and Republicans in the House outlined details on pending reform. This memo was published ahead of a subcommittee meeting on cannabis, covering decriminalization, regulation protocols, and specific justice reforms.
Cronos has maintained more robust revenue growth revealed in its latest earnings results. Cronos posted a loss, but revenue grew during its third quarter. The company also said it was on track to hit $20-$25 million in operating expense savings for the year.
CEO Mike Gorenstein also explained, “We achieved new product launches in the vape category powered by rare cannabinoids like CBG and CBN, and in Israel, we continued to grow the PEACE NATURALS brand with medical patients while expanding our leading position in the country. Looking further ahead, we expect pre-roll innovation to drive our recovery in the category in the fourth quarter and 2023.”
What’s going on with CRON stock options today? The bulk of the unusual volume was seen in the July 21, 2023, $5.50 Call options with more than 2,500 contracts compared to four contracts of open interest.
Virgin Galactic Holdings (SPCE)
Space tourism company Virgin Galactic is on this list of penny stocks today. It’s another one of the companies with unusual options activity much further out into the future. Specifically, the January 17, 2025 contracts are in focus. Both Calls and Puts are seeing unusually higher volume levels than open interest right now. In particular, the $4 Puts and $7 Calls have come to light.
The company’s shares recently caught some attention after reporting third-quarter results. In particular, Virgin’s cash position of “about $1.1 billion” was a critical standout within the report. “We remain on track to launch commercial service in the second quarter of 2023,” said CEO Michael Colglazier in a company news release.
“With Aurora Flight Sciences building our next generation motherships, and the selection of experienced manufacturers Bell Textron and Qarbon Aerospace to help build our Delta Class Spaceships, we have our primary suppliers in place to expand our fleet to support our long-term growth.”
New agreements with companies like Axiom Space have also helped bring some attention back to the intergalactic penny stock. Earlier this month, Virgin inked a deal to support a microgravity research and training mission to prepare an Axiom Space astronaut for a trip to orbit.
BlackBerry Ltd. (BB)
Shares of BlackBerry have continued their “comeback tour” that began in mid-October. Shares of the technology company have bounced back from 52-week lows of $3.94 to over $4.80 during that period. Everything from new patent grants and new services offerings to gaining NATO clearance and recently expanding worth with Amazon Web Services has helped propel BB stock.
The company has also benefited from unexpected interest from the meme stock traders. BlackBerry has been actively discussed on popular message board sites, forums, and amongst the Fintwit community in November. A mix of slightly higher short interest (around 8%) and market speculation have contributed to the uptrend.
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The recent action in the BB stock options chains is also a point of focus. In particular, the January 20, 2023, $5 Calls have gotten the most volume today with over 2,200 contracts. You’ll also notice that there is a relatively higher level of open interest, in general, on the Calls side of the options chain. Whether this is heading or an outright bullish bet on BB stock is yet to be seen. But it may be something to keep track of if BlackBerry is a company on your radar right now.
List Of Penny Stocks To Watch
- Cronos Group (NASDAQ: CRON)
- Virgin Galactic Holdings (NYSE: SPCE)
- BlackBerry Ltd. (NYSE: BB)
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