Options Trading
With its appeal to traders looking to boost returns on their investments, option trading is a practice popular among many investors. Many traders look to dabble in option trading due to the potential to maximize gains, or even generate income from market declines. With the variety of stocks available for traders to consider, how can an investor make the best decision for a successful trade? To answer this question, below are some of the top picks for stocks that can be used for option trading.
Amazon: It has been largely credited with powering the last decade's e-commerce boom and revolutionizing retail. Amazon brings great potential for option trading. Stocks are easy to buy in options, as implied volatility is potential higher than traditional stocks. Amazon comes with the stability of a brand and its reliable earnings per share.
Apple: With a highly active trading line, the technology giant has become the most popular company for options trading by a wide margin. Apple has a highly acclaimed track record of delivering lucrative earnings. Option trading for Apple can be an ideal choice for traders looking for long-term capital gains.
Tesla: Tesla shines in terms of its brand and publicity, and it usually generates significant buying among traders at the beginning of the year. With its prestige and widely recognized assets, traders looking for high volatility and large gains should consider Tesla for their option trades.
Microsoft: Option traders looking to go long in the technology sector are likely to pick Microsoft. With its impressive record and impeccable share history, now may be the time to consider Microsoft. It has great potential returns.
Gold: A hedge against possible market declines, gold has been a reliable asset for traders to invest in. This metal is often a common retail option target, as these are relatively easy to purchase and hold. Gold is an attractive asset with its strength even during a bear market. For traders looking for a safe investment vehicle, option trading related to gold might be the ideal choice.
Despite the vast array of stocks available for traders to consider, the stocks above remain some of the best picks for potentially lucrative option trades. Investors should consider a combination of factors such as brand stability, past performance, and any other information that can help inform and validate their decision prior to beginning an option trading venture. Knowing the risks, rewards and details of the transaction can help minimize losses, or maximize profits in option trading.
UltraAlgo delivers easy to understand Options data to improve your understanding of the stock market with a little help from artificial intelligence. Combined with our industry leading trading algorithms. Our brokerage intergations include: TradeStation, ToS (ThinkorSwim), TD Ameritrade, Interactive Brokers and TradingView. Our products are designed by veteran quants with 20+ years of experience in high frequency trading for hedge funds and banks.
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