Here at OptionsBrew.com, we use different tools to evaluate potential options trades, one of the tools we are using to get an overall idea what's hot in the stock options market is Barchart's Most Active Stock Options
Here is the list with most traded stock options on May 21, 2020
The BIG 5 is as follows, Facebook, Apple, Boeing Company, Tesla, and Alibaba. All but Apple and Tesla seems are part of the more conservative investors, as call options for these stocks are more than 68%
Traders of all verticals will find something here. The cheapest way to enter 1 covered call in May with top 20 most active stock is with LK stock, you could buy 100 shares per $206 and sell a weekly covered call option on it for $0.25 or about 12.13% potential return in a week
Or you could spend $245,955 to buy 100 shares of Amazon and also sell a weekly option on it for about $40.50 or about 1.6% return in a week.
The chance that Amazon will be in business after a week most probably is much larger than Luckin Coffee will be there (though we are not saying that Luckin Coffee will go bankrupt)
Most Active Stock Options May 2020
|Symbol||Name||Last||Options Vol.||% Put Options||% Call Options|
|BABA||Alibaba Group Holding||212.72||256,827||31.40%||68.60%|
|AMD||Adv Micro Devices||54.92||221,536||38.10%||61.90%|
|BAC||Bank of America Corp||22.98||181,311||36.90%||63.10%|
|F||Ford Motor Company||5.66||166,510||30.90%||69.10%|
|DIS||Walt Disney Company||117.96||161,202||31.20%||68.80%|
|GE||General Electric Company||6.5||151,489||21.80%||78.20%|
|DAL||Delta Air Lines Inc||23.21||130,503||22.00%||78.00%|
|AAL||American Airlines Gp||9.91||99,340||55.40%||44.60%|
|LK||Luckin Coffee Inc ADR||2.06||97,444||45.20%||54.80%|
Source: Barchart, data as of May 21, 2020
According to the barchart on following stocks call options were sold more than 70% : FB, BA, GE, TWTR, DA and CCL - In general when traders are selling call options they are expecting the stock to trade sideways or neutral.
Most put options were sold on AAL, AAPL, TSLA, AMZN, MRNA and LK - traders selling put options are more bullish, and this might be a signal for potential in these companies, though we would not be so excited about it, as most are tech companies and biotech. LK is a troubled company, and maybe short sellers are selling put options.
Here at OptionsBrew.com we are taking a closer look at stocks trading under $10 to sell covered calls. Ford and General Electric from the list seem companies we might sell covered calls in the future. Carnival Corp also looks interesting but is a bit out of our league (at least for now)
This is not a trade recommendation, this is a trade idea. If you will decide to invest in any of the mentioned stocks, we take no responsibility.