What are the best stocks to trade options in?

Joyce: What are the best stocks to trade options in?
I’m looking for stock option ideas. My criteria: good underlying stock that is undervalued, good stock and option volume, and stocks that are in a favored sector right now. I already have CSCO call options and expect them to go up this fall. Thanks for your ideas!

Answers and Views:

Answer by Rupert W
If you are asking that question in this forum then you shouldn’t be trading options. They are highly leveraged investments that can swing against you and wipe you out if you don’t know what you are doing and it sounds like you don’t.

I know it sounds glam and lucrative but when you have lost all of your money think back about whether you really knew the risks that you were taking.

The best and only idea you need is to bail out now before it gets messy.

Answer by muncie birder
I do not entirely agree with the 1st responder. His answer has some validity but not complete validity. Trading options will not wipe you out, only the money invested in them. They generally are not leveraged. A good candidate might be VLO. It certainly matches several of your criteria. Based on just about every criteria imaginable, it is undervalued. What could be more favored than oil right now? Another might be ABX. If the Fed cuts the interest rate, the dollar will not be worth wiping your bottom with.

Answer by Carlos G
Options on index ETFs.

During neutral trends (as now), it’s very difficult, even for the best stocks to go up.
Besides you need to know the market trend before getting into individual stocks or options.

Answer by cookie
if somebody knows it is insider information and you go to jail