What do you look for when identifying penny stocks to buy? Are you a technical trader looking for chart patterns? Is penny stock news the first thing you look for? There are plenty of strategies to use to make money in the stock market today. You’ve got your pick. While trading options might be a popular alternative to blue chips, there are many more risks that could work against you.
Not only do you have a greater level of volatility, but you’ve also got time decay to think about. I won’t get into a full explanation of what options are or how to trade them. But there is something to speak to when comparing penny stocks versus options.
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The closer to the expiration date you get with options, the more time decays away at the value of your option. What that means is the slightest fluctuation in an underlying stock’s price, the option can dramatically shift in value depending on how close you are to expiration. When it comes to penny stocks, there is no expiration date.
The main thing you need to focus on is your P&L. You still have the benefits of leveraging small sums of money to make larger percentage gains. Whether you’re learning how to trade options or penny stocks, it’s important to make sure you know both the risks and the potential rewards you’ll encounter.
When it comes to finding the best penny stocks to buy today, you should also think about this: what’s your goal? Are you looking to make a quick flip in a few hours or are you planning on swing trading penny stocks? There are different strategies to deploy in either case. So time horizon should also play a role in your game plan. With all of this in mind, are these names on your list of penny stocks to buy or avoid today?Biotech Penny Stocks To Buy [or avoid]: Aytu Bioscience Inc.
Aytu Bioscience Inc. (AYTU Stock Report) is back on the grind again on Thursday. Over the weekend we said it could be one of the penny stocks to watch after Gilead’s $21B deal with Immunomedics. But it hasn’t just been one of the names to know this week. In late-February, this penny stock first hit the radar as Aytu just closed on an acquisition of Innovus Pharmaceuticals. Over the course of the last few months, AYTU stock has performed relatively strong. It’s been more of a day trader’s focus than anything else.
The biggest pop came back in March and since then shares have been relatively rangebound. This week, however, AYTU stock has been on the move, now testing its 50 day moving average for the first time since early August. Those of you who are technical traders, take a look at this stock chart. The 50 DMA was a level of support back in April and early May. Since then, it’s been a clear level of resistance. Not only did AYTU stock test this level, it also traded above it for more than just a few hours.
Aside from the technical move, we’ve also got to consider what’s happening with the company as well. Last week the company announced that it inked a deal to distribute the Pinnacle CovID RAD Rapid Antigen Detection Test worldwide. The rapid antigen test delivers results in fifteen minutes.
Pinnacle IVD Corporation plans to scale U.S. manufacturing capacity for the CovID RAD Rapid Antigen Detection Test to 25 million tests per month. Next week Aytu reports its Q4 2020 results and will give a business update. Since September 4th, AYTU stock has managed to bounce back by more than 35% so far.Biotech Penny Stocks To Buy [or avoid]: Tonix Pharmaceuticals Holding Corp.
Tonix Pharmaceuticals Holding Corp. (TNXP Stock Report) is another one of the technical set-ups to watch this week. The penny stocks took a back seat in August and September (up until this week). Prior to this, TNXP stock was a big mover in July, reaching highs of over $2.40. Earlier this year, TNXP stock jumped from below $0.60 to $2.46 after inking a deal with Columbia University studying the immune responses to COVID-19 in healthy volunteers who have recovered from COVID-19 or were asymptomatic.
Similar to Aytu, Tonix share slipped during the second half of Q3. But this week the penny stock has picked up a little steam. It’s going to be interesting to see if that can continued in light of the bigger trend this quarter. Tonix hit the market with several key updates that have triggered the recent jump. First, the company announced that it enrolled its first patient in its observational COV-LOGIV study (TNX-C001).
Thursday saw even more followthrough with TNXP stock after another big update. Tonix announced that it will host a live webinar next Thursday. The focus will be on the concept of two types of immune responses – antibody vs. T Cell. Tonix said it will also give an overview of the challenges of developing an effective vaccine.
So it appears that September 24th is a big day for at least 2 penny stocks on this list thus far. Will TNXP be on your list of penny stocks to buy or avoid heading into next week? Similar to AYTU, TNXP has tested its 50DMA this week, while it also appears to have a Golden Cross forming. This is when the 50DMA crosses above the 200 DMA and is considered a bullish indicator.Biotech Penny Stocks To Buy [or avoid]: Akebia Therapeutics Inc.
Akebia Therapeutics Inc. (AKBA Stock Report) got completely demolished this month. So why are we even mentioning it? Well, like many of the stocks over $5 that became penny stocks this year, we aren’t seeing it at those levels. We’re seeing it as a penny stock. The company focuses on developing treatments for kidney diseases and saw its share price cut from around $10 to under $2.50 this month. What happened? Well, the stock that usually calls $10+ its home reported some less than acceptable news according to the market.
Earlier this month, Akebia announced top-line results from its PRO2TECT phase 3 program. This was the second of its 2 global cardiovascular outcomes programs. These were designed to evaluate the efficacy and safety of its vadadustat. It’s Akebia’s investigational treatment for anemia due to chronic kidney disease in adults not on dialysis. As you’ve likely already presumed, the results didn’t meet the mark. Specifically, it missed the safety MACE endpoint. Aside from that, the top-line results achieved primary and key secondary efficacy endpoints. As we’ve always said, even in light of bad biotech results, it’s important to see what management has to said in order to see if it thinks there’s still hope.
“While achieving the MACE endpoint would have made our path here more straightforward, as it is in dialysis, we still believe we have a path toward approval for vadadustat in non-dialysis,” stated John P. Butler, President and CEO of Akebia. This week has been full of conference presentations. It looks like those have positively impacted AKBA stock so far. Thursday’s activity was some of its highest since the results were reported.Biotech Penny Stocks To Buy [or avoid]: Spectrum Pharmaceuticals Inc.
Spectrum Pharmaceuticals Inc. (SPPI Stock Report) has been a top-performing biotech penny stock this year. It hasn’t experienced the massive breakout that stocks like NVAX did. However, its uptrend since March has been very consistent. If you looked at SPPI stock back in March and completely forgot about it, shares have climbed more than 100% in that time. The last time we focused on the company was back in July. At the time Spectrum was one of the high volume penny stocks to watch. The company had just reported positive results from a Phase 2 trial of its cancer drug, poziotinib.
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Spectrum reported that the trial met its pre-specified primary endpoint in previously-treated patients with non-small cell lung cancer that also have specific HER2 exon 20 insertion mutations. Spectrum is also in process of requesting a pre-NDA meeting with the FDA seeking an indication for second-line NSCLC patients with HER2 exon 20 insertion mutations.
Coming into September, Spectrum, like other biotech companies, had a busy first few weeks of presentations. The company presented at the Rodman & Renshaw conference as well as Cantor Fitzgerald’s Healthcare conference. Its recent achievements have also seemed to have inspired the analyst community to rally behind the company. Shares moved higher on Thursday after JMP Securities initiated coverage on Spectrum. The firm gave a rating of Market Outperform. It also gave a $12 price target. Furthermore, not only has SPPI stock broken above its 50 and 200 DMA, like TNXP, the SPPI stock chart is also showing early signs of a Golden Cross formation.