Best Penny Energy Stocks To Buy Under $5 Right Now

Penny stocks can be your best friend or your worst enemy when it comes to making money in today’s stock market. Several places exist where you can turn $100 into $1,000 in one day. But then again, there are some places too where your investment can become worthless in a matter of minutes.

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So if you are looking for the “best” penny stocks to buy, have a good definition of what is best for you. Do you see penny stocks of unusual volume to trade today, or are you trying to find one? best penny stocks to invest for the long term?

Today, we take a look at some of the hottest stocks to watch, which can be bought for under $5. Remember, just because they may seem “cheap”, that doesn’t mean they won’t be any less risky.

Penny Stocks To Buy Under $5

Tellrian Inc. (NYSE: TELL)

Penny energy stocks have shot higher this month. Thanks to the Russo-Ukrainian conflict, energy prices have risen. Tellurian has been in the limelight as things like liquefied natural gas are gaining momentum. The company’s plans to advance the Driftwood LNG project have also helped attract penny shares.

The project is expected to see construction begin in April with the financing process already in the works. With debts unpaid and new natural gas wells in production, he has positioned himself to take advantage. Specifically, CEO Octavio Simoes explained last month that “Tellurian is optimally positioned with a fully executed market-based LNG SPA and permitted projects. Bechtel will begin construction of the Driftwood LNG in April, and we will seek to complete the financing process as soon as possible.”

TELL shares continued to hit fresh highs during early March from a technical perspective. We’ve also covered the recent options market action on the Tellurian. Today, there is a significant level of open interest up to the April 14 expiration date. The highest levels are at the $3.50 March Call and the $4 April 14 Call.

Transocean Limited (NYSE: RIG)

Sticking to the global energy industry, Transocean is also getting a lot of attention recently. The Company provides offshore contract drilling services to oil and gas companies. Taking into account the problems facing the Russian market, most of the oil and gas companies or companies exposed to the market niche have made profits this month.

Despite mixed earnings regarding last year’s performance, Transocean management remains optimistic about 2022. CEO Jeremy Thigpen discussed this year’s strategy by saying, “As we enter 2022, we are more optimistic than the last seven years. Energy demand remains resilient pushing oil prices to a seven-year high. As a result, we are experiencing a growing list of opportunities from customers around the world who value our high-spec floating fleet and our strong and consistent operating performance.”

Similar to Tellurian, the Transocean options market is hot right now. Not only were there some strikes with above-average volume, but there were also many strikes with a high level of open interest. Notably, March 18’s $4 Call has the highest open interest as of this article, with over 27,000 contracts.

Meanwhile, there was a spike in volume today on $4 and $5 Calls on April 8. While not always a clear indicator of a bullish or bearish move, unusual options activity has been seen to gauge general market expectations. In this regard, the market seems to be taking a more bullish stance on energy stocks such as TELL and RIG based on the options market.

• Is This Penny Stock On Your Buy List Right Now? 3 to Watch

Imperial Petroleum Inc. (NASDAQ: IMPP)

Imperial Petroleum shares have surged since late February. The shipping company isn’t necessarily an “energy producer,” however, its place in petroleum and crude oil logistics puts it on this penny stock list.

Imperial owns 3 MR product tankers and one Aframax oil tanker with a total capacity of over 255,000 tons deadweight. Following the close of the recent $12 million financing round, attention is on the company’s next move. Imperial directly highlighted the acquisition of additional ships as one of the allocation of funds.

Considering the surge in momentum that increased the energy stock, Imperial followed suit. When it comes to penny stocks like this, it might also be worth paying close attention to what his plans are for the company, and you can look to past updates for some clues. In this regard, the company’s latest investor deck gives some ideas of what the company is aiming to achieve this year. In particular, Imperial expects fleet coverage for 2022 to be around 73% if all options are exercised. The company also says that several lease extension options are available, which also have higher rates. Here’s a snippet from that deck:

Are Penny Stocks Worth It?

There are many pros and cons of trading penny stocks. But if you know some of the basics, you’re already in a good position. Research is essential to identify potential opportunities in the market or things to avoid. This article goes deeper beyond a simple headline and focuses on alternative data. Things like options streaming and even going straight to a company website to read a discussion of future prospects can be helpful when it comes time to make your trading decisions.

It is also worth noting what is happening in the stock market today. Geopolitics has made a considerable impression on different industries. Energy is one of them and has greatly benefited from the global conflict that is pushing energy prices higher in 2022. Whether this remains the case or not in the long term remains to be seen. For this reason, it is best to have a clear strategy and plan to ensure you can take advantage of the current trends in the current stock market.

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