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

2 Answers

  • 1 decade ago
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    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 -, 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.

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