Any suggestions for Jan 09 options. Preferably mid to high risk, and mid or large cap stocks. thanks?
Looking for something less than 10 bucks per contract, on a mid to high beta stock. Thanks for your help and suggestions
- zman492Lv 71 decade agoFavorite Answer
For most stocks, the minimum increment on option quotes is $0.05 per share. That means the only options available to buy for "less than 10 bucks per contract" are those with a bid of $0.00 and an ask or $0.05 per share. In general, if there is not another person in the world willing to buy a particular option then I would have trouble recommending that option to anyone.
That would limit your choices to the stocks trading with penny increments. As far as I know, the only stocks trading in penny increments are shown in the following FAQ:
Q: Can you provide further information on options trading in penny increments?
A: On Friday, January 26, 2007, the six options exchanges began a pilot program to trade options in one-cent increments. The pilot includes 13 stocks and exchange-traded funds (ETFs). The one-cent ($0.01) increments are available for options with a quoted price of less than $3.00. Options with a quoted price above $3.00 are available in nickel ($0.05) increments. All QQQQ options, however, are quoted in one-cent increments..
The pilot program consists of the following securities:
A - Agilent Technologies, Inc.
AMD - Advanced Micro Devices, Inc.
CAT - Caterpillar, Inc.
FLEX - Flextronics International Ltd.
GE - General Electric Co.
INTC - Intel Corp.
JAVA - Sun Microsystems, Inc.
MSFT - Microsoft Corp.
QQQQ - Nasdaq-100® Trust Shares
SMH - Semiconductors HOLDRs
TXN - Texas Instruments, Inc.
WFMI - Whole Foods Market, Inc.
WM - iShares Russell 2000® Index
The penny pilot rollout was expanded on September 28, 2007. On that date, the following symbols were converted to pennies:
AAPL - Apple, Inc.
AMGN - Amgen, Inc.
AMZN - Amazon.com, Inc.
BMY - Bristol-Myers Squibb Co.
C - Citigroup, Inc.
COP - ConocoPhillips
CSCO - Cisco Systems
DIA - Diamonds Trust
DJX - Dow Jones Industrial Average index
DNDN - Dendreon Corp.
FCX - Freeport-McMoRan Copper & Gold, Inc.
GM - General Motors
MO - Altria Group, Inc.
MOT - Motorola, Inc.
NYX - NYSE Euronext
OIH - Oil Services HLDRS
QCOM - Qualcomm, Inc.
RIMM - Research in Motion Ltd.
SPY - SPDR S&P 500
T - AT&T, Inc.
XLE - Energy Select Sector SPDR
XLF - Financial Select Sector SPDR
YHOO - Yahoo!. Inc.
XSP - Mini SPX index
The penny pilot rollout was again expanded on March 28, 2008. On that date, the following symbols were converted to pennies:
AA - Alcoa, Inc.
AIG - American International Group, Inc.
BAC - Bank of America Corporation BAC
BSC - The Bear Stearns Companies, Inc.
CFC - Countrywide Financial Corporation
DELL - Dell, Inc.
EBAY - eBay, Inc.
EEM - iShares MSCI Emerging Mkts. Index Fund
EMC - EMC Corporation
F - Ford Motor Company
GS - Goldman Sachs Group, Inc.
HAL - Halliburton Company
HD - The Home Depot, Inc.
JPM - JPMorgan Chase & Co.
LEH - Lehman Brothers Holdings Inc.
MER - Merrill Lynch & Co., Inc.
MNX - Mini-NDX Index Options
NEM - Newmont Mining Corporation
PFE - Pfizer, Inc.
RIO - Vale
SBUX - Starbucks Corporation
SNDK - SanDisk Corporation
TGT - Target Corporation
VLO - Valero Energy Corporation
VZ - Verizon Communications, Inc.
WM - Washington Mutual, Inc.
WMT - Walmart Stores, Inc.
XOM - Exxon Mobil Corporation
Even with penny increments such low priced options are pretty much a gamble, so I will let you decide which (if any) of those stocks you think is worth gambling on. Any option trading for $0.09 per share or less and expiring in less than three weeks has to be considered "high risk" by any practical definition.
- 4 years ago
Large cap is very safe than mid cap stock invest in good large cap stock.