NEW YORK ( TheStreet) -- As daunting as it may be at times, buying stocks when they are unloved by others demonstrates an ability to separate emotion from logic. Companies become oversold when emotion takes over in the market and drives the prices lower.The desire to escape the pain of further losses results in many selling at the precise moment they should buy. Of course, sometimes stocks become oversold as a result of proper money-management stop-losses triggered. Having a stop loss is vital to investing survival and your exit plan must be put in place before considering an entry.
Five Oversold Stocks With Option Plays
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.