Jun 17, 2022 (Penny Stocks via COMTEX) -- Are penny stocks on your day trading watch list in 2022? If not, you might want to reconsider. I'm not here to tell you how to approach the stock market, but today we've seen, first-hand, why cheap stocks can become a day trader's best friend. This year has been full of volatility across all sectors. But even if the stock market crash intensifies, there are sure to be at least a handful of cheap stocks experiencing explosive moves.
Today, for instance, the latest focus of retail traders was Revlon Inc. (NYSE: REV ). The company was a prime example of what can occur when catalysts meet speculation and traders take over. For starters, REV stock doesn't typically see more than 1 million shares in trading volume in a given session.
It's also worth noting that share prices have been in a perpetual downtrend for almost a year. But, since June 14th, a little bit of news and a growing trend in short squeeze penny stocks became the perfect storm for a big breakout.
Are Penny Stocks Worth It: REV Stock Case Study
Revlon Inc. announced it would file for Chapter 11 bankruptcy. The initial move to the downside was swiftly bought up in a flurry of bullish speculation and short covering. New reports suggesting that there could be a potential acquisition in the works also helped to add a positive spin to REV stock. But there is also a downside to extensive breakouts, as I'll show you next.
Earlier this year, BLBX stock ran from under $2 to over $5 in a short period. However, after reaching those recent highs, the penny stock imploded and fell below the $2 level. That's why it's always good to have a trading game plan when approaching highly volatile stocks like these.
Today we look at a few of the more popular penny stocks that gained the retail community's attention.
Penny Stocks To Watch
Nerdy Inc. (NYSE: NRDY )
Comera Life Sciences Holdings Inc. (NASDAQ: CMRA )
Hims And Hers (NYSE: HIMS )
Shares of Nerdy Inc have been on our list of penny stocks to watch for a few weeks now as the stock has rebounded from 52-week lows. The education technology company has turned heads in the wake of the stock market sell-off in 2022. While earnings and industry awards have helped justify the upbeat sentiment, insiders have been doing most of the "talking," so to speak.
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We discussed the company as one to watch before June with insider activity ; so far, that trend hasn't ended. Insiders continue buying shares of NRDY stock in the open market. The latest round of purchases came from CEO Charles Cohn. His most recent filing is a 13D showing a 35.5% stake in the company. If you read our article " Buy Penny Stocks Like Hedge Funds Do: A How-To Guide ," you know what significance a 13D has.
Amid the latest NRDY stock insider trading, shares ticked higher and hit new June highs on Friday.
Comera Life Sciences Holdings Inc.
One of the more popular penny stocks today among retail traders is Comera Life Sciences. The company's IPO was one of the lackluster events of the year, with shares plummeting almost immediately after CMRA stock opened for trading on the NASDAQ last month. However, the last week of trading action has seen a much different tone. Helping with this bullishness was news of a new Executive Vice President and Chief Financial Officer. At the end of the week, it was also reported that Comera was granted a patent titled " Excipient compounds for protein processing ," which could be related to its current pipeline candidates.