The best stocks for weekly
options meet a number of criteria, and these factors are vital to consider when
choosing which weekly options to trade. While there are certain stocks that are
frequently great for trading weekly options, and that we use often for our
trading alerts, the combination of what
makes a weekly option ideal to trade at any given moment is an ever-changing
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THE IMPORTANCE OF VOLATILITY
The best stocks for weekly options are those that are
experiencing a significant amount of volatility, or fluctuation in price. If
the price is not changing much, it will be very difficult to make a profit on
the trade. Especially when you factor in the cost of entering the trade, a
sluggish price is clearly an enemy to making money on trading weekly options.
Even if the stock is usually fairly volatile, it is vital for you to use
up-to-the-minute information on price movement to make sure that the price is
likely to be fluctuating enough within the short time-frame of your trade.
a longer duration options contract, there is more leeway for the price to hover
and then resume moving before the contract expires. However, when trading
weekly options, you only have a very short length of time to attain an increase
with each trade.
THE BEST STOCKS FOR WEEKLY OPTIONS HAVE HIGH VOLUME
In choosing the best stocks for weekly options, the
importance of high volume cannot be overlooked. For one thing, volume drives
volatility, and as discussed in the previous point, volatility is vital for
winning trades. When there is a lot of activity in terms of buying and selling
options contracts, this ensures that the price is constantly moving, which
provides the best possible likelihood of obtaining the desired amount of profit
within the time-frame.
High volume also helps to ensure that there will be
buyers ready to take a contract off your hands when you are ready to sell it.
It is possible that a price may undergo big changes, but that due to a lack of
volume, you could be unable to sell your contract for the market price, or your
THE BEST STOCKS FOR WEEKLY OPTIONS BASED ON SECTOR
There are certain sectors in which stocks generally tend to
offer good conditions for trading weekly options. Our weekly options advisory
service membership focuses strongly on stocks within the sectors of technology
and healthcare. The stocks of many companies within these sectors frequently experience
high volume, lots of volatility and new developments, which act as catalysts
for great weekly options trades.
The best stocks for weekly options are those that are likely
to experience a dramatic price movement due to an impending event.
These catalysts include earnings reports, major deals made
between companies, analysts ratings, and
General conditions in the marketplace can greatly boost the
viability of a stock for options trading opportunities.
Recent examples of this include the demand for online
healthcare which has seen companies such as Teladoc
experiencing significant growth.
The increase in the need for cyber-security has allowed
companies like CrowdStrike to perform at a level that has made their stock a
great choice for trading weekly options.
When choosing the best stocks for weekly options, bear in
mind that while there are certain elements that can make certain stocks a
generally good bet, trading weekly options successfully requires
up-to-the-minute research and awareness of the ever-changing market landscape.
Honeywell International is a diversified conglomerate with a strong presence in the aerospace and defense sectors. The company has significant potential, particularly in the building technologies sect…