5 Stocks to Options Trade for October 2024

The stock market is like a buffet – there's something for everyone. Whether you're a risk-taker who wants to invest in stocks for a chance at significant returns or someone who likes to play the market's ups and downs, there's an option for you.

One popular option is, well, options! These financial instruments are a favorite among traders who love to make money from market fluctuations. They're especially popular in the day-trading world, where traders use their skills to spot opportunities and make quick profits.

The beauty of options is that you can profit from a stock's price volatility without actually owning the stock. It's like betting on whether the stock price will go up or down without putting your money into the game.

October is one of the most happening months when it comes to trading. Many companies plan their earnings release for the third quarter between mid-October and mid-November, and the markets experience high volatility and activity due to anticipation from the market’s various stakeholders, particularly investors and traders. 

Analyzing macroeconomic factors, sector-specific catalysts, and market anticipation, we have come up with our list of 5 stocks that must be on every options enthusiast’s radar to look out for in October 2024: 

NVIDIA CORPORATION (NASDAQ: $NVDA)

The leading supplier of GPUs (Graphic processing units) and leader in the tech space when it comes to artificial intelligence, Nvidia Corporation is one of the most popular stocks for options trading. Not only has Nvidia proved its mettle and showed significant growth since the middle of 2023, but its revolutionizing AI innovations have boosted the company’s name. Moreover, the recent news regarding its insider sales of approximately 6 million shares totaling around $713 million, under the pre-arranged plan 10b5-1 trading plan being conducted by the tech giant’s CEO Jensen Huang and sales being halted because of reaching the plan’s limit has surged the price of the stock showing signs of extreme volatility, which in turn, is a treat for options traders. 

In such a scenario, where the options trading volume is approximately 1.9 million and the earnings release is anticipated to be on November 14th, 2024, the upward momentum suggests that the option trader should implement a bullish call spread. They could consider buying a call at the money and selling one further out of the money. Also, to hedge against the downside risk, traders can opt for a put debit spread. 

TESLA INC. (NASDAQ: $TSLA)

Tesla Inc. has always been the talk of the town when it comes to providing sweet returns to its investors – be it the equity market or derivatives market. The EV (electric vehicles) behemoth has also made its mark in energy storage solutions and autonomous driving technology in 2024. Though increasing competition has led to volatility in the stock, strong fundamentals keep the long-term outlook for Tesla Inc. strong. With significant events lined up for Tesla Inc. in October, starting from third quarter vehicle deliveries on October 2nd, the most anticipated “robo-taxi” event on October 10th, and Tesla’s earnings release scheduled on October 16th, significant volatility is expected, which, is what Tesla is proudly known for. With such volatility-inducing events around the corner, straddle would be the best bet for options lovers as the volume that is being traded also stands at approximately 1.67 million with decent movement in prices. 

APPLE INC. (NASDAQ: $AAPL)

October should be labeled “Apple’s month” as it is critical to the company’s activities. Where the new model is launched in September end, and the sales that follow after that decide the trajectory of the stock. Apple is a cream stock for both stock investors and option traders. Despite being a stable and established company, Apple’s diversification in its product lines offers growth potential. Its continuous effort to innovate its products and develop the best trends makes it a dominating power. Apple is one of America’s leading firms with a market cap of over $3.5 trillion, and such a vast market capitalization indicates stability, which is not a green flag for options traders, but what sets Apple apart, even in this case scenario, is that the stock’s volatility is double of the market average. 

With an earnings release scheduled for October 24th, an options trading volume of approximately 802k, and new product launches on the cards, a bull call spread might be a good strategy for options traders anticipating an upward trend. For those who are cautious about a downward trend likely due to rising inflation or consumer spending reduction, they can resort to a protective put strategy to benefit the most from the situation. 

INTEL CORPORATION (NASDAQ: $INTC)

Intel is the pioneer in the semiconductor space and has maintained its legacy throughout. Still, competition from companies like AMD and NVIDIA has put Intel in a position to fight back and regain its footing. With these happenings, there were talks of Intel needing investment for its turnaround strategy. This news reportedly saw volatility in the stock prices. After Apollo Global Management’s investment proposal of $5 billion, the stock has shown steady movements, showcasing volatility after a long time. Intel’s stock has not shown much movement since the beginning of the year. This has come as good news for options traders. The earnings release scheduled on October 24th, 2024, along with the current options trading volume of approximately 674k, and this news bomb dropped in the market, the stock is going to get in the volatility game, and in such a scenario, a covered call and collar strategy would work best for the options lovers. 

PALANTIR TECHNOLOGIES (NYSE: $PLTR)

Palantir Technologies is a renowned name in the world of big data and AI-driven solutions. Famous for its government contracts, the company is seeing growing interest from the private sector, which has had a sparkling effect on its stock price movements. Recently, Palantir Technologies became a member of the S&P 500 Index and was trading at an all-time high, and the stock price took a leap in this leap year. 

With the successful backing of large-scale government contracts. AI expansion and earnings release scheduled on November 5th, 2024, Palantir Technologies will continue to experience volatility in its stock prices, making it a perfect pick for options traders. Palantir has an average options trading volume of approximately 542k, and its growth prospects make bull call spread a perfect strategy to root for.

Extra Shots: Well, the five stocks mentioned above are must-haves on an Options trader list for October 2024, but the below-mentioned stocks should also be kept a watch on as the activities and respective options trading volumes make them lucrative picks – 

• Amazon.com Inc
• Meta Platforms Inc
• Alibaba Group Holding Ltd – ADR
• Advanced Micro Devices, Inc
• GameStop Corp

While these stocks are performing well in the market, an options trader must always exercise due diligence and caution while choosing the options to trade on. Their goals should align with the stock’s movements, and appropriate trading strategies should be implemented to make the most of the opportunities that the market holds. If you are new to options trading and are looking for a good broker that is beginner friendly, Public options currently is the cheapest way to trade options and provides the best resources to learn about trading. 

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