Site icon Banyan Hill Publishing

Join the Options Boom in a Smarter Way

Just because option volumes have increased doesn’t mean profitability has increased.

I followed Reddit’s infamous WallStreetBets page long before it made headlines.

At first, I was in it for the memes about the markets and investing.

Eventually, I was more interested in seeing how risky investments turned out.

One type of post I often saw was about “YOLO” bets.

That’s when someone posts about betting everything they have on one stock.

Most of the comments would endorse this insane move.

But there was also the occasional helpful comment.

The piece of advice I often saw was about using options instead.

Over time I noticed I didn’t have to scroll that far before seeing a comment like that.

Little did I know that this was the start of a bigger trend.

The Rise of The Retail Options Trader

Over the years, options trading has become more accessible to retail investors.

And when the meme stock craze started, investors seized on that accessibility.

There was a massive increase in daily options volume for the top 15 meme stocks starting in late 2019.

Chicago Board Options Exchange data shows that the biggest increase was in retail trades made up of small contract sizes.

This momentum continued into 2021, with a record 39 million options contracts traded daily on average.

That’s a 35% increase from 2020 levels.

And retail investors accounted for over 25% of this activity.

To put that in perspective, retail now accounts for over 9X the total daily volumes of the early 2000s.

Ian King Can Guide You Beyond Basic Options Trading

Just because volumes have increased doesn’t mean profitability has increased.

Most of these retail investors are buying basic put and call options.

These types of options have a lower probability of success compared to advanced options strategies.

Yet very few retail investors are using them.

This makes sense considering options can be intimidating at first glance.

But Ian King is about to make it easy for you with his new options service.

This service will introduce you to his options strategy.

And it will take the intimidation out of it by guiding you through each trade.

You can get started by checking out his “Profit Framing” webinar.

Regards,

Andrew Prince

Research Analyst, Strategic Fortunes

 

Morning Movers


From open till noon Eastern time.

 

Zogenix Inc. (Nasdaq: ZGNX) develops and commercializes therapies for patients living with rare diseases. The stock jumped 67% this morning on the news that Belgian pharmaceutical company UCB agreed to buy the company for $1.9 billion.

 

BrainChip Holdings Ltd. (OTC: BRCHF) develops software and hardware solutions for artificial intelligence and machine learning applications. It is up 24%, continuing its momentum from Tuesday thanks to being granted a new U.S. patent that would allow it to maintain its global competitive edge in the field of neuromorphic artificial intelligence.

 

Gamida Cell Ltd. (Nasdaq: GMDA) develops cell therapies to cure blood cancers and serious blood diseases. It is up 20% on positive news out of the FDA that puts it closer to submitting its drug candidate Omidubicel for a Biologics License Application.

 

SoFi Technologies Inc. (Nasdaq: SOFI) is a fintech company that operates an online platform providing financial services. It is up 15% after clearing its final regulatory hurdle in becoming a bank and being approved for a bank charter.

 

Harmony Gold Mining Co. Ltd. (NYSE: HMY) engages in the exploration, extraction and processing of gold. It is one of the many gold mining and producing stocks today that is up 15% as gold prices rise to a two-month high.

 

Leap Therapeutics Inc. (Nasdaq: LPTX) acquires and develops therapies for the treatment of cancer. The stock is up 11% after the company announced positive outcomes and data from the study of its lead drug candidate, DKN-01.

 

First Majestic Silver Corp. (NYSE: AG) engages in the acquisition, exploration, development and production of mineral properties with a focus on silver. It is another precious-metals stock that is up 11% today as gold and silver prices rise on inflation worries.

 

Renalytix Plc (Nasdaq: RNLX) develops artificial intelligence-enabled in vitro diagnostic solutions for kidney diseases. It is up 10% after analysts at HC Wainwright & Co. initiated coverage on the stock with a buy rating.

 

Vimeo Inc. (Nasdaq: VMEO) operates as a cloud-based software platform for teams and organizations to create, collaborate and communicate with video worldwide. It is 9% after it reported double-digit gains in user and revenue metrics for December.

 

Casper Sleep Inc. (NYSE: CSPR) designs and sells mattresses, furniture and other sleep accessories to consumers in North America and Europe. The stock rose 9% after shareholders approved the sale of the company to hedge fund Durational Capital Management.

Exit mobile version