The increased volatility in September will likely continue this month. Investors have five stocks that are offering wide moves. Their corresponding options might provide rich premiums.
In the gaming sector, Roblox (RBLX) ticked slightly higher, although it gave up its recent rally. RBLX stock traded in the low $50s before closing at $42.37 on Sept. 30. Last week, Jefferies downgraded the stock, citing the recent rally as overly optimistic. Daily active user growth might stall if churn remains high.
Take-Two Interactive (TTWO) is stock idea #2. Early last month, Sensor Tower released data that indicated that Sony (SONY) PlayStation took 77% of the 5.3 million in Grand Theft Auto 6 pre-sales.
In the betting market, watch Flutter Entertainment (FLUT). Its FanDuel product benefits from the NFL season. Still, the firm faces competition from Kalshi and Polymarket. The prediction might take market share away from Flutter.
On Sept. 29, Brazil banned sports betting and iGaming, so Flutter cannot restart betting activity unless Congress rejects it.
CarMax (KMX) is idea #4. The company posted a nearly 20% Y/Y increase in revenue to $7.88 billion. If its newly opened, offsite auction center gains momentum, expect the strong sales momentum to continue.
Lastly, watch the discount brokerage market. Charles Schwab (SCHW) is pulling back on worries that a weak stock market would hurt trading volumes.
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