Explore Your Options by Tom Gentile
A RARE OPTION OPPORTUNITY
Is it worth buying options on low-priced, highly volatile stocks?
Sometimes an opportunity simply presents itself at the least-expected time. My brother-in-law recently asked me for my opinion on SunEdison Inc. (SUNE) stock. I’ve told him in the past that I wouldn’t touch this one with a 10-foot pole. It’s way too volatile, and has price swings that would make the toughest trader cringe. So I told him what I always tell him, which is, I wouldn’t own the stock. Then it hit me. I wonder what the options are trading at? I know this stock is a single-digit stock, so I am not expecting much. I took a look at the chart of SUNE...