Well, its time again to revisit our list of stocks under $20 with weekly options for 2024. Before you go on, take a look at my list of stocks under $20 with weekly options from 2023. That will give you a great idea of what to expect from this years candidates.
As we dive in, I’ve got to say it, most of these stocks should probably be avoided long term. After all, they’re typically under $20 for a reason, so proceed with caution. That said, I’ve done everything I can to provide the best quality list of stocks under $20 with weekly options for 2024 based on the specific criteria below.
One last thing, head over and check out the OptionBoxer Portfolio Journal as well. The cost is minimal and if you want to be successful, be sure to track those options positions. You won’t find a recurring monthly bill or the need to rely on anyone for your trade history. It’s yours forever, and I for one really prefer it that way.
Selection Criteria
- Last Price – Under $20
- Open Interest above 5,000 contracts
- Share volume above 1 million
- Positive Free Cash Flow
- Positive Profit Margins
By eliminating companies that just aren’t making any money the quality of these assets can be dramatically improved. While I still urge caution, eliminating companies losing money should make for a much more enjoyable ride.
List of Stocks Under $20 with Weekly Options for 2024
1. AEO – American Eagle Outfitters
Today’s Current Price – $20.29
Sitting just outside our $20 threshold is this well known brand from the fashion industry. While they may not appeal to the growth minded investor, they offer options traders more than enough to consider. With 2 days to expiration traders are receiving about 1% in premium. Make 1% every 2 days and you’re going to be one happy trader when the year concludes.
As for the company itself I’d say they do well enough. They maintain a positive free cash flow balance and have beaten on analyst expected earnings in the last four quarters. Let price retrace from this level back under $20 and it could be just the right fit for that next options trade.
2. CLF – Cleveland Cliffs Inc.
Today’s Current Price – $19.65
Coming in at number 2 on our list of stocks under $20 with weekly options for 2024 is Cleveland Cliffs. Admittedly, I know very little about this company but they do seem attractive. Volume is well above average and while the premium is slighty less than American Eagle’s, so is volatility. As the market retraces, options premium will likely improve to make CLF even more attractive. Currently, traders can expect to earn approximately .9% with 2 days to expiration. However, move out in time and the sky is the limit for any options trade you’ll like.
Fundamentally, the company doesn’t appear to be trending in the right direction by my assessment. They’ve certainly got some work to do to improve revenues and profit margins. That said, they’ve been around since the 80’s and weathered more than a few storms along the way.
3. M – Macy’s Inc.
Today’s Current Price – $19.04
Macy’s is certainly a long way from they’re day in the sun but I just can’t seem to avoid them as an options trader. I don’t prefer the prospects of owning the shares outright but from an options angle, they offer at least the baseline requirement of liquidity. I don’t think a cash secured put or a covered call is ideal here but for those shorter term plays Macy’s could be the way to go. They enjoyed a nice rebound from the abyss during the free money covid recovery but quickly returned to a downtrend when that ended.
4. KMI – Kinder Morgan Inc.
Today’s Current Price – $18.06
Checking into this list for the second year in a row is Kinder Morgan. If you took a moment to review last year’s list you’ll notice they’ve traded only marginally lower than one year ago. Had we been collecting that income all year we could easily walk away now with a pile of cash. Liquidity remains strong but you will have to move out in time a bit to collect appropriate cashflow. At 16 days to expiration, KMI is offering about 1.2% in premium.
5. PBR – Petroleo Brasileiro SA ADR
Today’s Current Price – $16.59
Petrobas is checking in on our list for 2024 at number 5, mostly due to their insane yield. Find yourself holding the bag on this one and you’ll likely enjoy some bonus money for the trouble. However, don’t go diving headfirst into the shallow end just yet, that dividend is more than a little sporadic. It’s impossible to tell if or when that dividend will come, or for how much. Look at their options though and you’ll find great liquidity and just under 1% in premium with 2 days to expiration. Look out 44 days and you’ll uncover about 2.5% or 22.81% annualized just out of the money.
6. ABR – Arbor Realty Trust Inc.
Today’s Current Price – $14.78
If reliable dividends is to your liking then you’ll enjoy trading in and out of Arbor Realty Trust. They pay a very respectable 11.61% as of this writing and offer, in my opinion, plenty to like as the economy improves. Now, having said that, we aren’t currently in a climate where real estate investment trusts have been thriving. Trust me, I’m holding a bag on Medical Properties Trust to prove I’ve learned this lesson the hard way.
Fundamentally, Arbor Realty Trust has more than a few respectable characteristics. They have a solid profit margin and plenty of free cash flow to continue that dividend in the near term. If the environment changes in their favor then owning them could make even more sense for those needing some real estate exposure.
Optionally, look out at 44 days and you’ll be happy to find 5.71% or 47.4% annualized! And that my friends, is what we’re looking for.
That said, ABR seems a little to good so proceed very slowly with this one.
7. PARA – Paramount Global
Today’s Current Price – $14.15
Option traders, meet Paramount Global. You know, that entertainment company that owns most of the movies we loved as kids. In fact, as I write this I’m shocked with how much of the entertainment I’ve enjoyed over the years that they’ve either owned or been involved with. Here is a link to their Wikipedia page for those interested.
In any case, they do NOT have a very pretty chart. They only seem to understand what a downtrend is. Would I want to own them? Probably not, but for some options income It does peak my interest. At 2 days to expiration we’ll receive just above 1% in premium to play.
8. GT – GoodYear Tire & Rubber Co.
Today’s Current Price – $13.62
For this candidate you’ll need to go out a few days to trade but if you’ve owned a vehicle in oh, I don’t know, the last 100 years then you’ll recognize the name. GoodYear has been making tires since before our great grandparents were born and as such is deserving of a spot on the list. At 44 days to expiration, traders will welcome the 3.8% in premiums for a stock that really seems to like trading around it’s current level.
Fundamentally however, the tires look a little flat to me. If only fixing that bottom line were as easy as that can of fix-a-flat.
9. Coty Inc.
Today’s Current Price – $11.55
This isn’t a stock I’ve traversed paths with before but given it’s portfolio of brands it’s made the list. Seriously, check out this link of the brands in their catalog, you’ll be surprised. List of Coty Brands. Their stock chart appears to be stabilizing in what can only be concluded as a difficult economic period, so that’s encouraging. It seems investors have been more inclined to own the stock since they stopped paying the dividend and started using that cash to improve the company.
Coty’s free cash flow isn’t great but without more research that may be a good thing if their reinvesting it in the business. Profit margins also appear leaner than I’d prefer but their earnings per share is improving which is again, an encouraging trend.
Liquidity on the weekly options is also more lean than I’d prefer for this list but I just couldn’t ignore them. They’re portfolio of brands is farther reaching than I’d anticipated. However, look at the monthly expirations and liquidity risk seems irrelevant.
10. UAA – Under Armour Inc.
Today’s Current Price – $8.18
Finally, rounding out our list of stocks under $20 with weekly options for 2024 is Under Armour. Honestly, Under Armour, what’s the deal? I just don’t understand this company. I think most would agree they trail only Nike as one of the most recognizable athletic brands. Still, Nike moves ever higher while UAA moves lower and lower. Clearly, I’m missing something or the management team here is just woefully inadequate.
Nevertheless, Under Armour makes the cut mostly because of the name and because I like their products. Liquidity is there but can be limited at certain strikes so be sure to check the open interest before trading. Premium with 2 days to expiration is non-existent but move out to 16 days and you’re above 2%, at the money! Kind of good and bad I suppose but if they would get themselves together the longer term prospects are certainly there.
Closing Thoughts
With 2023 in the history books and a new year staring us down, I hope you’ll take this list of stocks under $20 with weekly options for 2024 as it was intended. As a list of assets for our use and not as a lifelong investment candidate. Sure, one or more of them may be true darlings over time but probability suggests that most will flounder or even outright fail. And as such, be sure to always exercise prudent risk management before investing or trading. Thanks for checking out the list and don’t hesitate to reach out in the comments if I can ever help.
God bless,
Jeff
