When it comes to trading stock options, we’re definitely talking about an excellent way to enlarge and diversify your financial portfolio. Still, if you’re going to make the most out of this financial instrument — you’re going to need to be smart, tactical, and constantly flexible.
There are a few traits required for successful stock traders — this includes a certain predictive talent, as well as unmovable nerves that are able to withstand nail-biting situations. In essence, you need a decent intuitive ability to predict the movement of stock prices to an agreeable degree of accuracy. You also need to be able to predict the time frame of the stock changes, as well as the volume.
Of course, the single most important factor you need to think about is what stock you’re actually going to invest in. There is rarely a single correct answer, but it’s mostly smart to trade in stocks that are active and intensely liquid.
Why Choose Active Options Stocks?
All other parameters aside, it’s crucial to trade in stock options that are extremely active. Imagine if a stock didn’t possess the correct level of trading volume — the spread for each bid you want to make would be bigger. As a result, you could suffer an effect dubbed “slippage” — where your trade is not executed according to the price which you had in mind.
In fact, these unexpected costs could rise to up to 15% of the trade’s worth; let’s be realistic, that’s quite a lot to pay, especially if we think about the stacked-up overhead after a while.
Considering all of this, what dividend stocks should you think about investing in? We’ll go over some of the most interesting companies right here!
For starters, we’ll pick one of the most renowned manufacturers of computer processing hardware on the planet — AMD. In the previous year, its shares had increased by more than 30%, making this tech giant more than an interesting example of a well-performing stock.
However, we should note that this company has had a stock dip in March 2020. This is a fact that’s true for all companies on this list, as the global stock markets reacted to the devastating spread of COVID-19. Therefore, it’s nothing alarming about the company itself, and its stock value rose back up quickly enough.
In the long run, the biggest stock uptick for AMD was brought on by their 2019 deal with Google; the two companies partnered on a ground-breaking service for the streaming of video games called Stradia.
This service is supposed to bring a Netflix-esque experience to the world of video games, allowing users with weak GPUs and CPUs but strong Internet connections to play their favorite games on any kind of configuration. Because of this and other smart business decisions, demand for the AMD-manufactured Radeon GPUs will probably stay high in the future.
The Apple stock value reached a record success in October of 2018, and it hasn’t quite managed to surpass those heights since. This is due to the fact that their Chinese market has experienced fewer sales in the past couple of years, due to the rise of domestic brands like Xiaomi and Huawei.
Still, it should be noted that this company still has one of the strongest stocks on the NASDAQ. Their service offers, such as Apple Pay, the iCloud, and the App Store, are likely to continue growing in value and potential in the foreseeable future.
Bank of America
Next up, we’ve got one of the more interesting stocks — Bank of America. This is an incredibly intriguing piece of stock simply because its shares have previously proven themselves stable when viewed in the long run, but far more jittery in the short term.
Though, its prospects over the short term are still pretty great — their most recent reports suggest a fairly stable financial state. And Bank of America still manages to be more affordable than its rivals like JPMorgan Chase and Wells Fargo in terms of stock prices.
One of the most obvious examples of historically valuable stocks is Facebook. And don’t let the fact that they’ve had a bad time as of late worry you; the current public perception predicament that they’ve found themselves in will probably not mar the value of the company in the long run.
When it comes to revenue growth and user numbers, the company is still going as strong as ever. Though, it should be noted that these rising stats mainly come from developing countries where Facebook isn’t quite as widespread as in the Western World. When it comes to Europe and the U.S., the user numbers seem to have begun plateauing. Nevertheless, there’s still lots of room for the company to grow in the future.
Our following pick of the draft is another chip hardware giant — Micron. Their 2019 financial stats seem to indicate a mixed bag. On the one hand, they’ve surpassed their own estimates for recent quarterly earnings; but they’ve also cut back on their production in the past two years in lieu of smaller demand.
We’ll end this list with one of the fastest-growing companies of the 21st century — Disney! This company has definitely etched its stamp across the previous two decades with a couple of incredibly bold and significant business moves. First, there’s their acquisition of Marvel and LucasArts (the company behind the incredibly lucrative Star Wars franchise) — and more recently, they’ve also acquired 21st Century Fox and all of their properties.
Sure, their stocks experienced a slight dip once the announcement was made, seeing as it will likely mean some layoffs — but the company’s ever-growing content library seems to indicate a positive financial trend for the following decade as well.
And that’s a wrap! We hope this guide was useful to you and that you’ve picked up a few best stock options to invest in right now. Make sure you are staying safe in these times we are going through. Have a good one, guys!