The term penny stock refers to a company's stock that is traded for less than $5 a share. The $5 price level comes from the 1934 Securities Exchange Act, a law which was passed by the U.S. Congress to control all securities transactions involving parties other than the original issuer. The Security Exchange Act stated that equity securities with a market value of less than $5 per share could not be listed on any national stock exchange or index. Although some penny stocks are traded on significant exchanges like the New York Stock Exchange (NYSE), the majority are traded over-the-counter (OTC) using either the privately held OTC Markets Group or the electronic OTC Bulletin Board (OTCBB). OTC trades don't take place on a trading floor. All quotations are generated digitally.
The market has been range bound for the last few weeks with volatility on the decline, and earnings all over the place. So where to go to look for a trade? Nike has already had Earnings and is near a low of the year, so seems like a good option. As a contrarian that can mean only one thing to me: I have to make a trade with the assumption it will go up from here over the next 45ish days. We will do that by making a Long Call Vertical trade to bet that it starts to head up over the next couple months. For more on my trading and how to join me in real time, see below. Watch the video to get the details. Kal Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All tr