Best Options this Week

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Contributor, Benzinga
May 31, 2023

Looking for the best options this week? The government and the Federal Reserve have created plenty of volatility for options traders to sink their teeth into. Whether you want to play the NASDAQ’s meteoric rise or the buzz redirected into recovery stocks, you may want to look into options trading strategies. As with any trading strategy, the most important aspect is to match the trade with your personality. If you don’t have the stomach to weather an earnings announcement, you don’t have to. 

Here are the best options this week for every trading blueprint.

Quick Look at the Best Options This Week:

1. Peloton (NASDAQ: PTON)

$5.083
-0.307[-5.70%]
Last update: 1:05PM (Delayed 15-Minutes)
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Open5.390Close-
Vol / Avg.8.389M / 11.377MMkt Cap1.815B
Day Range4.940 - 5.44052 Wk Range4.305 - 17.830

Peloton (NASDAQ: PTON) makes interactive fitness equipment sold in North America and abroad. It offers live streamed, on demand and interactive touch screens such as the Peloton Tread, Peloton Bike and digital applications for virtual exercise classes. Peloton currently has 2.9 million subscription users and counting.

The stock has a market capitalization of $3.1 billion. Peloton’s 52-week low is $8.73 and its 52-week high is $127.57. Its high liquidity levels trade an average of 12,671,135 shares per day and 2021 revenues hit $4.02 billion.

2. NextEra Energy (NYSE: NEE)

$52.12
-0.03[-0.06%]
Last update: 1:06PM (Delayed 15-Minutes)
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Open52.070Close-
Vol / Avg.22.826M / 9.770MMkt Cap105.476B
Day Range50.495 - 53.11052 Wk Range50.180 - 88.595

Headquartered in Juno Beach, Florida, NextEra Energy Inc. is a leading clean energy company. It owns and operates 2 businesses — Florida Power & Light Company and NextEra Energy Resources. Florida Power & Light Company is the largest rate-regulated electric utility in the U.S. and serves more than 5.7 million customers.

The energy stock has a market cap of $158.162 billion and in 2021 a EPS of $0.84. It has a 52-week low of $67.22 and a 52-week high of $93.73. NextEra Energy has an annual dividend yield of $1.62 per share. It has high liquidity and trades more than 10.4 million shares per day. NextEra Energy has generated revenue of $17.1 billion in 2021.

3. Baidu (NYSE: BIDU) 

$130.45
-2.60[-1.95%]
Last update: 1:05PM (Delayed 15-Minutes)
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Open131.000Close-
Vol / Avg.944.805K / 1.908MMkt Cap45.605B
Day Range129.435 - 131.19052 Wk Range73.590 - 160.880

Baidu is a global leader in providing of internet search services. It operates business through 2 segments – Baidu Core and iQIYI. It offers a range of products including Baidu App, Baidu Feed, Haokan and Quanmin.

The internet service stock has a market cap of $49.1 billion. It has a 52-week low of $101.62 and a 52-week high of $187.48. Baidu has high liquidity and trades more than 9.3 million shares per day. It generated revenue of $107 billion in 2019.

4. Zoom (NYSE: ZM)

$68.93
-1.18[-1.68%]
Last update: 1:06PM (Delayed 15-Minutes)
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Open69.580Close-
Vol / Avg.1.241M / 3.405MMkt Cap20.745B
Day Range68.440 - 70.25052 Wk Range60.450 - 89.670

Headquartered in San Jose, California, Zoom is a communications technology company. It helps businesses and organizations bring their teams together in a frictionless environment to get more done. Its product is a reliable cloud platform for video, voice, content sharing and chat. Zoom runs on mobile devices and desktops.

The tech stock has a market cap of $33.36 billion and has an EPS of $1.44. It has a 52-week low of $79.03 and a 52-week high of $404.34. Zoom has high liquidity and trades more than 5.37 million shares per day. It generated revenue of $4.09 million in 2021.

5. Progressive (NYSE: PGR)

$139.95
0.98[0.71%]
Last update: 1:05PM (Delayed 15-Minutes)
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Open139.785Close-
Vol / Avg.933.638K / 2.695MMkt Cap81.885B
Day Range138.500 - 142.35052 Wk Range110.070 - 149.870

Founded in 1937, The Progressive Corporation is a leading insurance provider in the U.S. It provides insurance for personal, commercial, auto and residential properties. The Progressive Corporation has over 18 million customers across the U.S.

The insurance stock has a market cap of $69.52 billion and an EPS of $8.63. It has a 52-week low of $89.35 and a 52-week high of $122.23. The Progressive Corporation has an annual dividend yield of $0.4 per share. It has high liquidity and trades more than 3.06 million shares per day. It generated revenue of $$47.7 billion in 2021.

Benzinga Options Newsletter

Whether you already know how to trade options or you are looking for ideas, the Benzinga options newsletter is a great resource for up to date strategies for today’s market. As the market changes, your strategies must change. Read the newsletter for a guide to help you navigate today’s once in a lifetime opportunities. You can also register for Benzinga Pro to see charts, key data and additional information on every stock, cryptocurrency, option, etc. you choose.

Best Option Strategy to Use this Week

It also seems as though cooler heads are prevailing when it comes to stopping the spread of COVID-19. Daily reported cases are down from July highs. Daily reported deaths are down 75% from April highs. Let’s hope they stay there.

Most options strategists are assuming a short term bottom in the market at our current levels. The Chicago Board Options Exchange (CBOE) put/call ratio now stands at 0.5, meaning the market is bullish on itself. If you want to speculate, smart money is moving slightly away from downside protection to capture more of the upside potential. Consider bull call spreads on stocks you like and perhaps even a synthetic long position in a recovery stock.

Best Options Brokers

Your options broker is just as important as your strategy — your broker helps to define your execution. Here are some of the reputable brokers you can depend on for industry-standard uptime, negligible latency and a powerful user interface.

  • securely through Tradier's website
    securely through Tradier's website
    Best For:
    Inexpensive Options Trading
    Rating:
    Read Review
  • Securely through Interactive Brokers’ website
    Securely through Interactive Brokers’ website
    Best For:
    Active and Global Traders
    Rating:
    Read Review
  • securely through AvaTrade's website
    securely through AvaTrade's website
    Best For:
    Non US Forex Trading
    Rating:
    Read Review
  • securely through Plus500's website
    securely through Plus500's website
    Best For:
    Mobile Users
    Rating:
    Read Review

    86% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

  • securely through Webull's app
    securely through Webull's app
    Best For:
    Intermediate Traders and Investors
    Rating:
    Read Review
  • securely through TradeZero's website
    securely through TradeZero's website
    Best For:
    Overall Global Broker for Short Selling
    Rating:
    Read Review

Regardless of your risk tolerance, take the time to understand the benefits and risks of trading options before getting in over your head. We are currently in 1 of the most unpredictable markets of the modern era. There is no shame in leaning on your paper trading options account to learn how you react to strategies in the real world and to build a personalized data set.

Should you choose to join the battlefield, make sure that you give yourself a set of unbreakable rules. Be honest about your trading personality and even more honest about your trading ability. Successful traders dedicate extraordinary amounts of time and resources to success in trading, so make sure you put in your time. That time is more important than any amount of money you could ever invest.

Frequently Asked Questions

Q

Why do people trade options?

A

People buy call options when the price of a stock is expected to rise. People buy put options when the price of a stock is expected to fall. On the other hand, people sell calls when the price is expected to fall or stay the same and people sell puts when the price is expected to rise or stay the same.

Q

How do you make money off options?

A

Options profit is calculated by:

(Difference in buying and selling price of premium) (lot size) (number of lots)

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