Finding the best cheap stocks for options trading isn’t the easiest thing to do. Many lower-cost stocks are cheap for a reason and happen to be trash companies with little revenue and horrible balance sheets.
However, you can find some hidden cheap stocks with high trading volumes that are perfect for options trading.
My criteria are simple: Uncover cheap stocks under $10 to $20 with average volume of at least 1,000,000 shares traded on the NASDAQ and NYSE.
Best Low-Cost Cheap Stocks for Options Trading
Here are a few of the best stocks for options trading this week (in no order of preference).
- Lucid Group (NASDAQ: LCID)
- AMC Theatres (NYSE: AMC)
- SoundHound AI (NASDAQ: SOUN)
- Tilray (NASDAQ: TLRY)
- Marathon Digital Holdings (NASDAQ: MARA)
- Riot Blockchain (NASDAQ: RIOT)
- Novavax (NASDAQ: NVAX)
- Peloton (NASDAQ: PTON)
- SOFI (NASDAQ: SOFI)
- CleanSpark (NASDAQ: CLSK)
- Opendoor (NASDAQ: OPEN)
- Snap (NASDAQ: SNAP)
- NIO (NASDAQ: NIO)
Lucid Group (LCID)
Lucid Group Inc. is an American electric vehicle manufacturer that specializes in the production of luxury electric cars.
LCID is a heavily shorted electric vehicle stock with a high short interest that trades in correlation to Tesla (NASDAQ: TSLA). It’s one of the premier EV stocks with a good chance to compete with Tesla, Rivian, and Nio as one of the top electric car companies.
LCID is one of the best growth stocks under $10, making it a decent target for options traders.
AMC Theatres (AMC)
AMC Theatres is the largest movie theatre chain in the world with over 1,000 locations across the United States and internationally. AMC stock is one of the most popular meme stocks that retail investors trade on a regular basis.
There is plenty of opportunity to make money trading AMC options whenever there is market volatility. However, don’t expect a massive AMC short squeeze again due to consistent trading halts that prevent massive price gains.
SoundHound AI (NASDAQ: SOUN)
SoundHound is an audio and speech recognition company that uses AI to help companies increase revenue while decreasing overhead.
AI stocks are extremely popular and many retail traders target SOUN for quick options profits.
Tilray (NASDAQ: TLRY)
Tilray is the largest Cannabis company by revenue in North America with a wide portfolio of Cannabis brands.
Cannabis stocks may have bottomed due to a rise in legalization in several U.S. states with the possibility of federal legalization in the near future.
Marathon Digital Holdings (MARA)
Marathon Digital Holdings is a digital asset technology company focused on cryptocurrency mining and blockchain development. The company operates one of the largest mining operations in North America and is working to expand its mining operations globally.
MARA options move aggressively whenever Bitcoin soars or crashes in value. The company has the largest BTC holdings out of all crypto mining stocks plus it usually has a high short interest.
Riot Blockchain (RIOT)
Riot Blockchain is a US-based cryptocurrency mining and blockchain development company. The company operates a portfolio of digital assets, including Bitcoin, and focuses on the development and deployment of blockchain technology for businesses and industries.
RIOT is another stock that moves alongside Bitcoin and can be volatile whenever cryptocurrencies soar or crash in value.
Novavax, a biotechnology company, is known for its innovative approach to vaccine development. With a focus on creating advanced immunization solutions, Novavax has garnered attention from investors and the medical community alike. One of its most notable achievements is the development of a COVID-19 vaccine that gained regulatory approvals.
Peloton (NASDAQ: PTON)
Peloton Interactive, Inc. is a prominent player in the fitness technology industry, offering a unique blend of exercise equipment, software, and content to enable at-home workouts. The company’s stock has captured attention for its innovative approach to fitness and its surge in popularity, especially during the COVID-19 pandemic.
SoFI (NASDAQ: SOFI)
Social Finance, Inc. (SoFi) is a financial technology company that offers a range of services tailored for beginners and beyond. Its stock, listed under the ticker symbol SOFI, provides investors with exposure to the evolving fintech landscape. SoFi’s platform includes offerings like personal finance, investing, lending, and more.
CleanSpark (NASDAQ: CLSK)
CleanSpark (CLSK) has ventured into sustainable Bitcoin mining by utilizing its microgrid technology. This innovative approach aims to address environmental concerns associated with traditional mining methods. By integrating Bitcoin mining operations with energy management systems, CleanSpark seeks to maximize energy efficiency and reduce carbon footprint. This move reflects CleanSpark’s commitment to both clean energy solutions and cryptocurrency.
Opendoor (NASDAQ: OPEN)
Opendoor Technologies Inc. is a real estate technology company transforming property buying and selling. Through its platform, homeowners can quickly sell their properties, streamlining the traditional process.
Snap (NASDAQ: SNAP)
Snap Inc. is a social media technology company renowned for its multimedia messaging app, Snapchat. With a focus on ephemeral content, Snap has innovated features like Stories, filters, and augmented reality, captivating a younger demographic.
NIO (NASDAQ: NIO)
NIO is a prominent Chinese electric vehicle (EV) manufacturer, recognized for its cutting-edge technology and innovative design. As a leader in the EV market, NIO has garnered attention for its premium electric SUVs and battery swapping infrastructure. The company focuses on integrating AI, autonomous driving, and energy efficiency into its vehicles.
Options Trading FAQ
How Do I Find Cheap Stocks to Trade Options?
I use several options trading resources to research the best cheap options to buy right now:
- Barchart: An excellent resoure for options traders. I use the Most Active, Biggest Gainers, Most trade Options, and Unusual Options Activity pages to find cheap options trading ideas.
- Finviz: A free stock screener that helps you find cheap options trading ideas.
- Robinhood: The cheapest options broker that lists the top 20 stocks to watch and can help you find options trading ideas.
Can You Make Money with Cheap Options Trades?
Yes. Options move incredibly fast and are positively correlated with the underlying stock. I’ve bought options contracts for as little as 1 penny and sold the same contacts for $20 or even $100+ just hours later.
Don’t focus on the price of the option but instead focus on the total volume and price movement of the underlying shares.
Can You Trade Options for $100?
You can start trading options for $100 if you use an options trading broker with $0 options trading fees and focus on cheaper stocks like the ones mentioned above.
Robinhood is my preferred options trading platform that charges zero fees on trades. Just remember to avoid making more than 4 day trades within 5 consecutive trading days or you will trigger the pattern day trading ban.
You can avoid the PDT ban by switching your options trading account from a margin account to cash account.
Ready to Get Started?
If you are ready to start buying cheap stocks for options trading then check out our recommend cheap options trading platforms with the lowest fees.