Watch List: Four Stocks Moving Right Now

If you're into my free Profit Takeover e-letter, then you know I'm all about "asymmetrical returns." "What are 'asymmetrical returns?'" I can hear you ask.

Well, very simply, it means only taking a position in a stock or trade if it has a skewed risk/reward profile. That's "skewed" as in skewed our way, taking unusually low risk for a shot at banking extremely high returns.

There are plenty of traders, and I speak from long experience here, that would risk $1 for a chance to make $1. On the surface, that doesn't seem so bad; it even seems like it makes good sense. And, sure, if everything goes right, it can pay off OK.

I also speak from experience when I say there's a much better way, where every dollar you risk can potentially return $2, or $5, or even $10 - 200%, 500%, 1,000% gains. Those are asymmetrical returns.

They're not all that hard to find, either. I bring several to my readers every week, and we've had a shot at 110%, 107%, 132%, and more.

Now I've got four stocks and some promising trading ideas I want to share with you today...

Here Are the Stocks and Trades I'm Looking At

Here's where I think the week's best chances for asymmetrical returns are.

Vinco Ventures Inc. (NASDAQ: BBIG) is the new meme stock on the block, up 211% over the past five days. It's a textbook short squeeze - stock volume, option volume, implied volatility, and share price are all increasing.

But folks, remember, like all meme stocks, this is a stock you trade, not a stock you invest in.

Perficient Inc. (NASDAQ: PRFT) is a stock that wasn't on my radar until my colleague, Olivia Voz, host of "Money Morning LIVE," did a volume profile on the stock last week.

Shares are up over 8% in the past five days, and like BBIG, this one's got the making of a short squeeze. But be careful - because when this stock does turn around, it's not going to happen slowly. This thing could flip on you quickly, like ripping off a band-aid - "up the stairs, down the elevator."

Sundial Growers Inc. (NASDAQ: SNDL) is a pot stock through and through. It's found its way onto my watch list after a series of short pops and squeezes. Right now, it's only about $0.77, and it's a name I'm interested in adding to my portfolio.

If you want to go the option route instead, I'd look at the October $1 call for about $0.07. This is the quintessential asymmetrical return play: It's a dirt-cheap trade, and it will quadruple if SNDL goes to $1.30.

Ulta Beauty Inc. (NASDAQ: ULTA) reported great Q2 earnings this month, and I'm not surprised - my wife has probably kept this cosmetic chain up herself! She can't walk in there without walking out with a wallet that's about $200 lighter.

Traders seemed to fade the earnings on this one - and then, they bought the earnings fade. Go figure. From here, I see the stock going higher, and I'm looking at the October $390 calls for about $15.

Now, believe it or not, $15 qualifies as "expensive" in my book, but you can cut your risk by as much as one-third by selling the $420 calls against it, creating a call spread for about $10.

What can I say? Cheap is good - very good. Some of the biggest profit potential on the market can be had for a fraction of the price of the biggest marquee companies - stocks that can cost anywhere from under a buck to less than $10. Incredibly, it's like they're blacklisted; you don't hear much at all about this rare class of stocks. I know one Wall Street firm that's basically prohibited its brokers from offering these shares to customers. That doesn't change the fact that exceptional, top performers here have seen 2,953%... 4,801%... 12,754%... even 22,207% in less than a year. My friend Shah Gilani has more on these right here...

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