13 Best Stocks for Options Trading 2023

Always keep in mind that Options Trading is as risky as profitable and it's not for fearful traders. If you think you are brave enough to take the risk then options trading is for you.

The trend of options trading is increasing day by day. Statista published a report on 2022 where they mentioned- in 2013 the number of options contracts traded was 9.42 billion which increased to 54.53 billion in 2022. In this article you will find the best stocks for Options Trading in 2023.

List of Best Options Trading Stocks in 2023

The trading strategy is not the same for every trader. That's why the best stocks of options trading may vary for different traders. Some people trade with small amounts for them small valuation stocks are best on the other hand some trades with huge investments for them large valuation stocks are best.

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If you are considering options trading, it is important to understand the risks involved and to develop a trading plan that suits your individual goals and risk tolerance. My advice is do your own research to find out the best stocks for trading options on the basis of your own investment strategy.  Check out this list of best options trading Stocks.

Company	Symbol	Avg Options Volume (90 Days)	Industry
SPDR S&P 500 ETF Trust	SPY	1.52 Billion	Exchange Traded Fund
Tesla	TSLA	2.2 Billion	Automotive and Clean Energy
Invesco QQQ ETF Trust	QQQ	737 Million	Exchange Traded Fund
Nvidia	NVDA	771 Million	Gaming hardware and software
iShares Russell 2000 ETF	IWM	383 Million	Exchange Traded Fund
Amazon	AMZN	365 Million	E-commerce
Meta Platforms	META	293 Million	Communication services
Apple	AAPL	265 Million	Consumer electronics
Microsoft	MSFT	250 Million	Computer hardware and software
Netflix	NFLX	175 Million	Video streaming service
Alibaba Group	BABA	150 Million	E-commerce
Alphabet	GOOGL	92 Million	Ai and automation products
Roku	ROKU	11 Million	Digital media players

Source: Market Chameleon and last updated till July 31, 2023

What are the best stocks for option trading?

Options trading is considered one of the best investment opportunities. Here is a detailed overview of the best stocks for option trading considering their 90 days average report.

SPDR S&P 500 ETF Trust (SPY)

The SPDR S&P 500 ETF Trust is commonly known as SPY is an exchange-traded fund which is designed to track the S&P 500 index. It is the most popular ETF in the world, with over 300 billion USD in assets under management. SPY is a good way for investors to get exposure to the US stock market without having to pick individual stocks. For the potential of high returns and low risk, traders and investors usually like SPY options.

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Tesla (TSLA)

Tesla (TSLA) is an automotive and clean energy company located in the USA whose market capitalization is over $1 trillion. Tesla's stock price has been volatile in recent years, but it has generally trended upwards. The company's shares are listed on the NASDAQ stock exchange under the ticker symbol "TSLA". Tesla's shares are a popular investment for its potential to leverage the capital.

Invesco QQQ ETF Trust (QQQ)

Invesco QQQ ETF Trust (QQQ) is an exchange-traded fund (ETF) which is designed to track the Nasdaq-100 index. It is one of the most popular ETFs in the world, with over 150 billion USD in assets under management. QQQ is a good way for investors to get exposure to the technology sector without having to pick individual stocks. QQQ is very popular to the investors and traders for its highly liquid power.

Nvidia (NVDA)

Nvidia (NVDA) is an American technology company that designs graphics processing units (GPUs). It is one of the largest semiconductor companies in the world, with a market capitalization of over $600 billion. Nvidia's shares are a popular investment among both retail and institutional investors for its volatility. NVDA has the potential to generate large amounts of profits with low risk.

iShares Russell 2000 ETF (IWM)

iShares Russell 2000 ETF (IWM) is an exchange-traded fund (ETF) designed to track the Russell 2000 index. It is one of the most popular ETFs in the world, with over 50 billion USD in assets under management. IWM is a good way for investors to get exposure to the small-cap sector without having to pick individual stocks.

Amazon (AMZN)

Amazon (AMZN) is a leading multinational technology company in the USA. Amazon is the largest online retailer in the world, and also has a major presence in cloud computing, digital streaming, and artificial intelligence. Amazon's shares are a popular investment among both retail and institutional investors for its power of reducing the investors risk while giving high profit margin.

Meta Platforms (META)

Meta Platforms (META) is an American multinational technology company that specializes in social networking, artificial intelligence, and virtual reality. Meta Platforms is the parent company of Facebook, Instagram, WhatsApp, and Oculus. Meta Platforms' shares are a popular investment among both retail and institutional investors for the potential of high profit by reducing risk with their variety of risk management tools.

Apple (AAPL)

Apple (AAPL) is an American multinational technology company based in Cupertino, California. Apple works in the segment of consumer electronics, software, and online services. Apple is the world's largest information technology company by market capitalization, and the world's second-largest company by revenue. Apple's shares are a popular investment among both retail and institutional investors for the prediction ability of future share price.

Microsoft (MSFT)

Microsoft (MSFT) is an American multinational technology company that specializes in computer software, consumer electronics, personal computers, and related services. Microsoft is the world's largest software maker by revenue, and the world's third-largest company by market capitalization. Microsoft's shares are a popular investment among both retail and institutional investors for its potential to give a high profit margin with minimal risk.

Netflix (NFLX)

Netflix (NFLX) is an American multinational streaming entertainment service that offers a subscription-based streaming service featuring films, television series, documentaries, and more. It is one of the world's leading streaming services, with over 222 million subscribers in over 190 countries. The company's shares have been on a tear in recent years, as the streaming service has become increasingly popular.

Alibaba Group (BABA)

Alibaba Group Holding Ltd. commonly known as BABA is a Chinese multinational technology company that works in the segment of e-commerce, retail, and cloud computing. It is one of the world's largest e-commerce companies, and the largest in China. The company's shares have been on a tear in recent years, as the Chinese economy has grown and the company has expanded its reach.

Alphabet (GOOGL)

Alphabet Inc. (GOOGL) is an American multinational technology company based in Mountain View, California whose working segment is internet-related services and products. It is the parent company of Google, YouTube, Android, and other popular internet brands. Alphabet's shares are a popular investment among both retail and institutional investors.

Roku (ROKU)

Roku (ROKU) is an American company that manufactures streaming devices and provides streaming services. It is one of the leading streaming device manufacturers in the world, with over 55 million active accounts. The company's shares have been on a tear in recent years, as the streaming device market has grown.

Final Word

Ultimately, the best options trading stock is a personalized choice, aligning with an investor's financial goals and risk appetite. Beginners are advised to start with smaller positions, practice with paper trading accounts, and seek guidance from experienced traders or financial advisors as they embark on their options trading journey. As with any investment activity, a disciplined and well-informed approach is key to achieving long-term success in options trading.

FAQs

Can options trading make you millionaire?

Yes, options trading can make you a millionaire, but it is important to understand the risks involved before you start trading. Options are a type of derivative, which means that their value is derived from the value of an underlying asset, such as a stock or a bond. Becoming a millionaire through options trading typically requires a combination of skill, experience, discipline, and, to some extent, luck. Successful options traders often have a deep understanding of the market, use well-researched strategies, and manage risk effectively.

How to avoid loss in option trading?

Options trading can be an exciting venture for beginners, but it's essential to approach it with caution and a solid understanding of the basics. Some tips to avoid loss in option Trading are- learning the basic options strategies, understanding the risks, developing a trading plan, investing less to higher amount to avoid risk, staying updated and having monitoring power.