Why would anyone trade penny stocks? Let me answer it quickly: making money in the stock market. Apart from the obvious, because penny stock very cheap, you can buy a lot of shares and leverage a small amount of capital with otherworldly profit potential. This list goes on and on about how many penny stocks explode by hundreds or thousands of percentage points in a matter of hours or days.
PennyStocks.com – PennyStocks
There’s a lot of risk involved, but if you’re wondering whether You can get rich from penny stocks, the short answer is ‘yes’, but you have to know how to get started the right way. Playing a game of darts with stock symbols is not the best strategy. Looking for trends and compiling a well-researched list of penny stocks is. Today we do just that.
Penny Stocks To Watch
- Ring Energy Inc. (NYSE: REI)
- Uranium Energy (NYSE: UEC)
- Excel Technologies Inc. (NASDAQ: XELA)
Penny Stocks To Watch With Unusual Options Activity
This is not necessarily a stock market game at play. But the options market can tell you a few things about market sentiment. I know we’re talking about how cheap penny stocks are, and while you might not expect them to have options, there are many who do. If you are new to options, read our article, Trading Options 101: Beginner’s Guideto get up to speed with the basics.
Basically, traders tend to look at the options market for different reasons. One of these reasons is identifying overly bullish and bearish “unusual activity” or “betting” on a particular stock. For example, if there’s a bit of Open Interest but suddenly you see thousands of contracts traded during a single session, it might get attention.
If there is a large volume of Calls trading, the general tone is that “someone” thinks something bullish could happen and vice versa for Puts. However, it should be noted that options can also be used as a hedge. Options traders can shorten the Call or Put to collect the premium. They may also buy puts if they have significant stock positions to protect them from a possible downside move and vice versa for prominent short positions.
Volume can only tell you so much but it’s also something to watch out for when looking for market sentiment. The question you need to answer for yourself: are traders just playing the stock market game using options as their “toy”, or does this activity suggest something else?
Ring Energy Inc. (NYSE: REI)
Penny energy stock is on fire right now. Thanks to the Russo-Ukrainian conflict, everything from raw material companies to refineries and shippers got into the action. In this case, Ring is your leading oil and gas exploration company focused on the Permian Basin in West Texas and New Mexico. In a recent financial and operating update, leadership laid the groundwork for how the company prepared itself in 2022 to grow. In particular, Q4 sales volume jumped to more than 9,000 barrels of oil equivalent per day, up 11% from the third quarter. Meanwhile, in January 2022 the drilling program began.
“The success of our 2021 drilling program supports our plan to run a sustainable one-rig drilling program for the foreseeable future in 2022…As of January 1, 2022, nearly 60% of our low-cost hedge was launched enabling significantly higher revenues in 2022 with the assumption of the current oil price environment continues. “
Paul D. McKinney, CEO
McKinney isn’t the only one showing optimism in the Ring. A look at the options market shows the same sentiment at first.
REI Stock & Unusual Option Volume
In particular, REI Call option contracts expiring this month are in focus. The $3.50 and $4 strikes have seen significantly higher volume on open interest, and the $4 strike, in particular, recorded some unusual activity today. Over 19,000 contracts were traded compared to only 2,761 Open Interest.

Uranium Energy (NYSE: UEC)
Uranium stocks are also part of the energy stock discussion, with miners, refiners and suppliers benefiting. Thanks to the latest news on the Russian-Ukrainian conflict, nuclear power is at the forefront of the discussion. Russia seized Ukraine’s main nuclear plant this week, with sentiments of sympathy driving traders’ attention to nuclear power stocks.
Uranium Energy supplies the feedstock for nuclear power production and currently has two production-ready platforms in Texas and Wyoming. It also has a portfolio of resource-grade uranium projects in Arizona, Colorado, New Mexico, and Paraguay.
Despite the initial drop in prices, UEC stocks, as a whole, have maintained their upward trend over the past few weeks. Friday’s action was much more volatile than the rest of the session. However, by late afternoon, the penny stock managed to break back above $3.70. This bullishness further resonated in the options market as well.
Unusual UEC Stock & Option Volume
In the case of UEC stocks, we look at the March and April contracts. In particular, the $4 UEC Call on April 14 saw unusual volume on Friday. That saw over 1,300 contracts traded compared to just 663 Open Interest. Meanwhile, March Call contracts, as a whole, show a sizeable level of Open Interest for all strikes compared to the same strike for Put contracts. Does this mean the market is taking a more bullish bet on UEC stocks, or is it a hedge for a pending decline?

Excel Technologies Inc. (NASDAQ: XELA)
We have seen trends in the retail market involving penny stock under $1. These are some of them cheapest penny stock today and can be a source of enormous volatility. Even a move as small as a few cents can equate to a large percentage move. Exela Technologies is one of the penny stocks under $1 that seems to have been gaining more attention among options traders. We will discuss this further below.
One of the biggest catalysts that put XELA stock on traders’ radar was the news updates earlier this year. The company announced that it had renewed a $35 million contract with a consulting firm. Exela also announced a buyback of 100 million shares at $1 per share through a new banknote swap offer. At the time, it represented a premium of over 80%. While the exchange offer closed last month, it was recently extended to expire later this month.
XELA Stock & Unusual Option Volume
Since this exchange offer has taken place, the options market seems a bit more awake. Specifically, the $1 and $2.50 Calls on March 18th were revealed. Both have Open Interest between 26,000 and 46,791 contracts. What’s more, the $1 strike saw another spike in volume today, trading over 2,400 contracts before the end of the day.

Finding the Top Penny Stocks To Buy
This is just one way to find penny stocks to add to your watchlist. Sentiment has been an important driver for retail traders in particular. Be it unusual options activity or above-average trading volume, news, submissions, a mix of each – data is king. Knowing how to use that data to your advantage is equally important. Based on this info, are any of these names on your current penny stock list?
If you enjoyed this article and are interested in learning how to trade so that you have the best chance of consistently profiting, then you need to check out this YouTube channel. CLICK HERE NOW!!
[bg_collapse view=”link” color=”#4a4949″ icon=”arrow” expand_text=”Show More” collapse_text=”Show Less” ]
enterpreneur.com
medium.com
shofipy.com
[/bg_collapse]