People are making a lot of money nowadays by trading in options. Just as many people are earning profit nowadays by trading in options, on the other hand, many people are also losing their capital. The options market is very volatile because people lose their capital in a very short time and earn even 10 times in a very short time.
Trading in options can be highly risky in which your entire capital can be wiped out in just a few minutes. Not every company has an option chain in the stock market. In this article, I will tell you about 10 Stocks to trade options so that you can earn maximum profit by trading on these stocks. Before Trading on Options you must know what exactly it is. Read the below paragraph so that you understand clearly what it is.
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What is Options Trading?
Option trade is a contract between a seller and a buyer, where the buyer buys a right to buy an asset on a fixed date at a certain price in the future by giving the seller a payment which is called a Down payment or premium. In Options Trading, there is an expiry date and after the expiry date, the premium is no longer valid.
Let’s understand it with an example:
We book flight tickets to go somewhere on a fixed date. The difference is that, In this case, we have to pay the full price of the flight ticket. But in Options trading as Stocks to trade options, we have to pay a small part of the full price as a premium. Now let’s come to the example. After booking the flight ticket, we should travel on the flight or not? It depends upon us. There is no obligation. The same thing happens in options trading as well.
To know more about Option Trading Click the link here.
Now let’s check out the 10 US Stocks to Trade Options.
It is an Index option chain that has been created by 100 non-financial companies listed in the index. Which is called the NASDAQ 100 Index Options Chain. It is one of the most popular and active option chains on the Nasdaq as Stocks to trade options as a stock exchange.
2/ TESLA, INC.
Tesla.Inc. as Stocks to trade options is another American multinational automotive and clean energy company. This company also has an Option Chain. The market capitalization of the company is very high with 782.83 Billion United States dollars. On average, it has a monthly trade volume of 132 million. The company is headquartered in Austin, Texas.
Tesla is one of the most valuable automakers in the world. Tesla is in the field of vehicle design and manufacturing. It designs and manufactures electric vehicles, solar panels, solar roof tiles and related products and services, battery energy storage from home to grid-scale, etc.
Amazon.com as Stocks to trade options is an American multinational technology company. Which was earlier only an e-commerce website. It also focuses on cloud computing, online advertising, artificial intelligence, and digital streaming. Currently, Amazon.com is considered the world’s most valuable brand all over the world.
Amazon.com was founded by Jeff Bezos where he founded it from his garage on 5th July 1994 in Washington. There are a total of 14,65,000 employees in the company worldwide. The market capitalization of the company is very high with 1.30 trillion United States dollars. It has a monthly share traded volume of 63.85 million. The primary exchange of the Amazon company is Nasdaq. Trading in the Amazon Option chain can be lucrative if you trade with the right strategy and good investment manner.
4/ Apple Inc.
Apple Inc. as Stocks to trade options is another American giant in the field of technology. It is a multinational company whose headquarters is located in Cupertino, California. According to data from 2022, the Apple company is the world’s largest revenue generated company and it is also the biggest company in the world in terms of market capitalization with 2.89 Trillion United States dollars. You can Invest in equity as well as you can trade in the Options Chain of the company. It has 60.49 million monthly average trades on the stock market. Apple Inc. is one of the Stocks to trade Options to maximize your profits by trading on the Option chain of the company.
5/ Netflix Inc.
Netflix as Stocks to Trade Options is an American subscription-based video streaming company. It is headquartered in Los Gatos, California. This video-streaming service company has over 232 million paid memberships all over the world. You can invest in the equity share of the company as well and you can trade on the option chain of the company. It has a market capitalization of 193.70 Billion United States dollars. The primary exchange of the company is the New York-based Nasdaq stock exchange. The average monthly trade volume of the share of the company is 6.96 million.
NVIDIA Corporation as Stocks to trade options is an American multinational technology company that designs graphics processing units, application programming interfaces for data science and high-performance computing as well as system-on-a-chip units for the mobile computing and automotive market and it is a dominant supplier of artificial hardware and software. The headquarters of the company is located in Santa Clara, California. It has a very high market capitalization and an average monthly trade volume of 50.96 million.
Microsoft Corporation is an American multinational technology company. It has the most popular software products in the market. The headquarters is located in Redmond, Washington. According to Stocks to trade options as data for 2022, by revenue it was the world’s largest software maker. It has a very high market capitalization of 2.49 Trillion United States dollars. Along with the equity shares of this being available, the option chain is also available in the stock exchanges of the United States. It has a monthly average share trade volume of 27.06 million.
Cisco Company as Stocks to Trade Options is an American digital communications technology multinational company and the headquarters of the multinational company is located in San Jose, California. It develops, manufactures, and sells products such as networking hardware, software, high-technology services and products, and telecommunication equipment. The option chain of the company is also available on US stock exchanges. The market capitalization of the company is 207.01 Billion United States dollars. The monthly average trade volume in the share of the company is 19.30 million.
9/ Meta. Inc.
Meta.Inc. whose name was earlier Facebook, is an American multinational company and it is one of the world’s most valuable companies. Meta.Inc. has many worldwide popular products and services available in the market, such as Instagram, Facebook, WhatsApp, etc. Investing in the Option chain of Meta.Inc can be lucrative for you if you trade smartly and in a well-disciplined manner. The market capitalization of the company is 695.32 Billion United States dollars which is very high and the average monthly trade volume in stock exchanges of the US is 21.47 million.
10/ eBay Inc.
It is also an American multinational company of e-commerce and the headquarter of the company is located in San Jose, California. eBay is also a well-known company. Stocks to trade options as the Market capitalization of the company is 24.34 Billion United States dollars and the monthly average trading volume is 4.74 Million. eBay is another stock chain where you can trade Options.
As I said earlier, trading in Options can be very lucrative but it is also very risky. You trade as much money as you do not regret even after losing the whole capital. My job in this article was to tell you which option chain is mostly viewed in the United States. This article does not encourage you to trade on these particular Option Chains. If you still feel that you can book profit by applying your smart strategy then it will be your choice.
Comment how much profit you have booked from Options Trading so far.