Are you looking to dive into options trading but don’t know where to start? You’re not alone One of the most common questions I get from readers is “what are some good options to trade?” It’s a great question because choosing the right options can make all the difference between profit and loss
In this comprehensive guide I’ll walk you through the most active and liquid options in today’s market, share strategies for selecting promising options and provide real examples from current market data. Whether you’re a beginner or experienced trader, this article will help you make more informed decisions.
Why Trading Volume Matters When Selecting Options
Before jumping into specific options, we need to understand why trading volume is crucial when selecting options to trade. High volume typically means:
- Better liquidity – Easier to enter and exit positions
- Tighter bid/ask spreads – Lower transaction costs
- More efficient pricing – Less risk of manipulation
- Easier execution of complex strategies – Particularly for multi-leg trades like vertical spreads
As a trader myself, I’ve learned that sticking with highly liquid options saves headaches and often money in the long run. Nothing worse than trying to exit a position in a thinly-traded option when the market moves against you!
Most Active Options in Today’s Market
According to current market data from Yahoo Finance and TradeStation, these are the most actively traded options based on volume:
Top ETF Options
| ETF | Avg. Daily Options Volume | Description |
|---|---|---|
| SPDR S&P 500 ETF (SPY) | 9 million | Tracks the S&P 500 index |
| Invesco QQQ Trust (QQQ) | 4.8 million | Tracks the Nasdaq-100 |
| iShares Russell 2000 (IWM) | 1.7 million | Tracks the Russell 2000 small-cap index |
| SPDR Gold Shares (GLD) | 971,000 | Tracks gold prices |
| iShares Bitcoin Trust ETF (IBIT) | 759,000 | Tracks Bitcoin prices |
Top Individual Stock Options
| Company | Avg. Daily Options Volume | Business/Description |
|---|---|---|
| Nvidia (NVDA) | 3.1 million | Semiconductors |
| Tesla (TSLA) | 2.3 million | Electric vehicles |
| Apple (AAPL) | 1 million | Smart phones and tech |
| Amazon.com (AMZN) | 977,000 | E-commerce and cloud services |
| Advanced Micro Devices (AMD) | 798,200 | Semiconductors |
Looking at specific option contracts, SPX options are particularly active, with contracts like the SPXW251111C07000000 (SPX Nov 2025 Weekly 7000 call) showing volumes over 7,000 contracts in recent sessions.
Why These Are Good Options to Trade
There are several reasons why the options listed above make great candidates for trading:
- Exceptional liquidity – With millions of contracts trading daily, you can easily enter and exit positions
- Tight spreads – The bid/ask difference is typically minimal, reducing transaction costs
- Available strikes and expirations – These options offer numerous strike prices and expiration dates
- Market representation – They cover major market segments (tech, broad market, commodities)
- Volatility opportunities – Many of these underlyings experience enough volatility to create trading opportunities
As one trader friend told me, “I stick with SPY options because no matter what strategy I’m using, I know I can get in and out quickly without the market moving against me just because of liquidity issues.”
Choosing the Right Options Strategy
Having the right underlying is only part of the equation. You also need to match your strategy to current market conditions:
In Bullish Markets
- Long calls on SPY, QQQ, or high-momentum stocks like NVDA
- Bull call spreads to reduce cost basis while still capturing upside
- Cash-secured puts on stocks you wouldn’t mind owning if assigned
In Bearish Markets
- Long puts on indexes or vulnerable stocks
- Bear put spreads to reduce cost and define risk
- Covered calls on existing long positions to generate income during downturns
In Sideways/Neutral Markets
- Iron condors on low-volatility stocks or ETFs like SPY
- Calendar spreads to profit from time decay
- Butterfly spreads when you expect a specific price target
I personally prefer using SPY options for iron condors during low-volatility periods – the liquidity makes it easy to adjust positions if needed.
Options Trading Example: A Real-World Scenario
Let’s look at a practical example using current data. Say you’re bullish on the S&P 500 for the next month.
One approach might be to purchase the SPX Dec 2025 7600 call option (SPX251219C07600000), which shows good liquidity with over 1,200 contracts traded and open interest exceeding 4,200.
Alternatively, you could consider a bull call spread by:
- Buying the SPX Dec 2025 7600 call
- Selling the SPX Dec 2025 7800 call
This reduces your cost basis while still allowing for significant profit if the S&P 500 rises to or above 7800 by expiration.
Beyond the Usual Suspects: Other Good Options to Consider
While the highest-volume options typically offer the best trading conditions, there are other considerations for finding good options to trade:
Sector-Specific ETF Options
If you have a view on specific sectors, these ETFs have reasonably liquid options:
- Technology: XLK (Technology Select Sector SPDR Fund)
- Financial: XLF (Financial Select Sector SPDR Fund)
- Energy: XLE (Energy Select Sector SPDR Fund)
- Healthcare: XLV (Health Care Select Sector SPDR Fund)
Volatility-Based Options
The VIX index (CBOE Volatility Index) and related products can be good options to trade when you want to position for changes in market volatility rather than direction.
Earnings Season Opportunities
Stocks often see increased options activity around earnings announcements. This can create opportunities, but be careful – implied volatility usually drops after the announcement (known as “IV crush”).
Common Mistakes to Avoid When Trading Options
In my years of trading, I’ve seen (and made!) plenty of mistakes. Here are some pitfalls to avoid:
- Trading illiquid options – Stick with options that have tight spreads and high volume
- Ignoring implied volatility – High IV means options are expensive; low IV means they’re cheap
- Going too far OTM – Far out-of-the-money options are cheap for a reason
- Holding through expiration – Time decay accelerates in the final weeks
- Overlooking earnings dates – These events can dramatically impact option prices
- Not having an exit plan – Know when you’ll take profits or cut losses
One time I ignored earnings dates and bought calls on a tech stock right before earnings – even though the stock went up, my options lost value due to IV crush. Lesson learned!
Final Thoughts: Finding Your Own Good Options to Trade
While the options listed in this article represent the most liquid and commonly traded contracts, the “best” options for you depend on your:
- Trading goals
- Risk tolerance
- Market outlook
- Trading style
- Account size
I recommend starting with the most liquid ETF options like SPY until you gain experience. Then you can branch out to individual stocks and more complex strategies.
Remember that options trading involves significant risk, and most options expire worthless. Never trade with money you can’t afford to lose, and consider starting with paper trading to practice your strategies.
What are your experiences with options trading? Do you have favorite underlyings that you prefer to trade? Drop a comment below – I’d love to hear about your successes (and lessons learned)!
FAQ
Which option is best for trading?
- Bull Call Spread. A Bull-Call spread is also one of the best option trading strategies for beginners. …
- Bull Put Spread. Like the Bull-Call spread, a Bull-Put spread is a strategy in options trading. …
- Call Ratio Back Spread. …
- Synthetic Call.
What options trade is most profitable?
A Bull Call Spread is made by purchasing one call option and concurrently selling another call option with a lower cost and a higher strike price, both of which have the same expiration date. Furthermore, this is considered the best option selling strategy.
Can I make $1000 per day from trading?
In Conclusion:
By strategy, discipline, and patience, an income of 1,000 rupees per day from the share market is possible. Don’t trade on emotions, stick to your trading plan and utilize stop-losses. Stay current, you will over trade against yourself. Start small, learn from experience, refine techniques for beginners.
What is the 3-5-7 rule in trading?
The 3-5-7 rule is a risk management strategy in trading that consists of three components: risk no more than 3% of your total capital on a single trade, keep your total outstanding risk across all trades below 5% of your capital at any one time, and aim for profitable trades to be at least 7% larger than your losing trades on average. This rule helps manage risk, preserve capital, and enforce discipline.