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April 18, 2022, 10:43 a.m. EDT

7 Top Penny Stocks To Watch With Unusual Options Activity In April 2022

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Apr 18, 2022 (Penny Stocks via COMTEX) -- Are you looking for the top penny stocks to buy? Have you ever thought about looking at options volume for gauging sentiment? In 2022, this is one of the ways that active traders are looking to gain the edge. While big blocks of stock sold or bought can suggest underly sentiment, options trading activity has become somewhat of a means to find "hidden" activity. I say this because stocks and options operate on different terms.

When you buy shares of stock, you own the stock. But when you purchase options contracts, you simply hold the right to buy or sell the underlying stock. In this light, some traders are taking unusual options volume into account as a sign of what we'll call potential sentiment. Since the ones doing the options trading aren't taking direct ownership of the shares, it's seen as more of a bet in favor of a given directional move. Today we look at a few penny stocks with unusual options activity that could be on the radar in April.

7 Top Penny Stocks To Watch

  1. Camber Energy Inc. ( NYSE: CEI )

  2. MedAvail Holdings ( NASDAQ: MDVL )

  3. 22nd Century Group ( NASDAQ: XXII )

  4. Imperial Petroleum ( NASDAQ: IMPP )

  5. Up Fintech Holding Limited ( NASDAQ: TIGR )

  6. DiDi Global Inc. ( NYSE: DIDI )

  7. CTI Biopharma Corp. ( NASDAQ: CTIC )

Best Penny Stocks To Buy

If you are one of these traders getting yourself into tracking options flow keep a few things in mind. First, options trading isn't just buying to open the position or selling to close the position. Like stocks, you can "sell to open" your trade, which will factor into volume. There are also spreads and complex strategies that allow traders to achieve certain goals and take advantage of things like sideways trends.

Traders will also use options to hedge larger positions. For example, if earnings are coming up and the trader wants to hedge against bad news, they might purchase puts just in case things don't go how the trader thinks they will. If you want more info on trading options, check out our article Trading Options 101: A Beginner's Guide . For now, keep this info on volume in mind as we look at several penny stocks with unusual options activity this month:

Energy stocks are red hot right now. As we discussed late last week, geopolitical catalysts are active right now. Thus far, they've helped send the price of oil and gas to record levels not seen in years. Traders continue digesting supply and demand news within the sector as sanctions have put a stranglehold on global output. There's been a massive uptick in interest for oil and gas penny stocks with this.

One thing that companies like Camber Energy have going for them is rising support from the retail trading community. If you've followed the penny stock for the past year or so, you'll remember the epic rally last year. As was the case then, we've seen another uptick of interest in small-cap energy stocks. That has also translated into the options market for Camber Energy stock.

Some of the heaviest action is in CEI stock's April 22nd Calls at the $1, $1.50, and $2 strike prices. Since there isn't as much action in further out expiration dates, it may suggest traders are looking at the short-term trends right now.

Shares of MDVL stock have surged over the last few weeks. This was thanks, in part, to closing a sizeable private offering earlier this month. MedAvail, a tech-based pharmacy company, secured roughly $40 million that it plans to put to work. Among the use of proceeds is funding for strategic initiatives. What does the options market look like for MDVL stock?

Like CEI stock, MedAvail's nearest expiration date (May 20th) is seeing the most action today. In particular, the $2.50 and $5 strikes are heating up. The $5 Call option has fewer than 2,000 open interest contracts. Meanwhile, more than 5,600 have traded hands in the stock market today.

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