10 Top Penny Stocks With Unusual Options Activity This Week (2024)

What Are The Best Penny Stocks To Buy This Week?

This has been another wild week for penny stocks and higher-priced stocks. We started with an outlook on potential catalysts to watch for, which has remained a focus as market activity continues. Today, for example, market-moving events helped spark more volatility, which included comments from Fed Chair Jerome Powell early in the Thursday session. Thanks to another choppy session, traders are eating up the action, and there’s still one more day left to go.

What To Watch In The Stock Market This Week 9/5-9/9

Friday may be a lighter day on the schedule of events, but it hasn’t slowed things down in the stock market today. In this article, we look at the options chains of a few penny stocks and monitor speculative action. This continues our article: 5 Top Penny Stocks With Unusual Options Activity Today.

Penny Stocks & Options Activity

It’s important to remember that not all volume is buying volume, and options can be “shorted” by ‘selling to open’ a position. This process also comes with specific rewards for traders making that type of trade, which we discuss in more detail in our article Trading Options 101: A Beginner’s Guide. If you’re new to trading options, here’s some information from the article you might find helpful:

“An options contract offers the buyer the opportunity to buy or sell the underlying asset depending on the type of contract they hold. Unlike futures, the holder is not required to purchase or sell the asset if they decide against it. Each contract will have a specific expiration date by which the holder must exercise their option.

The options contract offers buyers two types of options concerning rights that can be acquired with varying options contracts: Call options give buyers options in relation to purchasing stocks at a stipulated time in the future. In contrast, Puts offer them options regarding selling a certain amount of shares they own at a particular time in the future.”

This article focuses on the options market to get an idea of potential pent-up sentiment. While high Call volume or high Put volume doesn’t necessarily mean a bullish or bearish outlook, traders will use this data as part of their overall due diligence process. Identifying possible “big money” bets or large hedges can help add a layer of insight to any trading strategy.

10 Top Penny Stocks To Watch With Unusual Options Activity This Week

• Vroom Inc. (NASDAQ:VRM)
• Sorrento Therapeutics (NASDAQ:SRNE)
• Tellurian Inc. (NYSEAMERICAN:TELL)
• Ginkgo Bioworks Holdings Inc. (NYSE:DNA)
• Lufax Holdings Ltd. (NYSE:LU)
• FuboTV Inc. (NYSE:FUBO)
• Imara Inc. (NASDAQ:IMRA)
• Bird Global Inc. (NYSE:BRDS)
• Party City Holdco (NYSE:PRTY)
• PLBY Group Inc. (NASDAQ:PLBY)

Penny Stocks To Watch

Vroom Inc. (VRM)

Shares of used vehicle eCommerce platform Vroom Inc. bounced on Thursday. The move comes when traders are looking for short-squeeze stocks to buy. According to Fintel and TDAmeritrade, the current percentage of the VRM stock float short sits around 20%. The penny stock came under pressure following its latest earnings results, and some Fintwit community members are hopeful for a squeeze. In addition to the short interest, options activity has also picked up. In this case, not only Calls but heavy Put volume has turned heads today.

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Short-term September expiry $1.50 strikes are leaning toward the Put side of the chain. There was also heavy volume in the October $1 Puts. As far as Calls go, January 2023 $2 Calls saw heavier action in the stock market today. These appear to mostly be part of a spread strategy that involves trading both Calls & Puts to take advantage of certain market conditions.

Sorrento Therapeutics (SRNE)

The biotech company Sorrento Therapeutics specializes in developing therapies for things like cancer, pain, autoimmune disease, and COVID-19. This week the company announced that it would participate in the upcoming Morgan Stanley Healthcare Conference on the 14th. The options market has already begun placing its bets ahead of this presentation. In this case, the September 16th $2.50 Calls gained the most volume in the stock market today. Whether or not this is connected to the upcoming presentation is to be seen. But with the 14th just days away, it could be something to keep in mind if SRNE stock is on your watch list.

Tellurian Inc. (TELL)

Energy stocks remain in focus with the global supply constraint and pricing pressures on oil & natural gas. Tellurian provides natural gas, liquified natural gas marketing & trading, and infrastructure. Shares have climbed significantly over the last two months, along with commodities prices. This week’s options action is leaning toward the Calls and, specifically, the October 21st expiration $4 Calls. These are considered “in-the-money” as TELL stock continues trading above the $4 mark. With more concerns about the future of the energy market globally, Tellurian could be one of the companies the market pays attention to.

Ginkgo Bioworks Holdings Inc. (DNA)

Cell programming company Ginkgo Bioworks has been in a consolidation phase for the last few weeks. However, the range has become attractive to some day traders, with shares flip-flopping between $2.30 and around $3.80. Over the last two days, DNA stock maintained a stronger uptrend, and the options market seems to have responded in kind. September 16 expiry $3 Call are the flavor of the day with more than 3,700 contracts traded. There’s already a more substantial Open Interest with 6,366.

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The company recently boosted up its biosecurity platform with the acquisition of epidemiological data infrastructure assets from Baktus Inc. Ginko assumes ownership of specific proprietary datasets and a software platform.

Lufax Holdings Ltd. (LU)

Chinese fintech company Lufax Holdings hit fresh, 52-week lows on September 8th. Concerns have grown about the future of certain Chinese issuers due to some uncertainty surrounding listing requirements in the U.S. Despite this case, it hasn’t stopped speculative traders from placing their bets in the options market. In this case, LU stock has experienced unusual activity in the March 17, 2023 expiration $5 Calls. More than 11,000 contracts traded on Thursday compared to just 1,692 Open Interest. Is this a far-out bullish bet on LU stock’s future or a hedge to pair with a more bearish position?

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