Hello again, I hope everyone is ready for Christmas and I hope it hasn’t been too crazy wherever you are. It’s been quite the roller coaster this past week, which kind of just made me shake my head and laugh. To me, a wild ride is exactly what I would expect from the end of 2024 because that’s much of what this year has been for my life. Still, I’m thankful today for every gift God has entrusted me with and for every opportunity He’s provided. I hope each of us will meet God’s call in 2025 and beyond with a measure of Faith and Courage we didn’t know was in us. Here’s to a great Christmas and a terrific 2025!

Now, it’s time again to check in on our favorite list optionable assets; stocks under $20 with weekly options for December 2024.

Disclaimer – As is the norm, please be mindful that many, or possibly all of these stocks are under $20 for a reason. Thus, caution and due diligence prior to trading or investing is strongly advised.

Selection Criteria

  1. Last price below $20
  2. Open Interest above 5,000
  3. Positive free cash flow p/share
  4. Positive net margin
  5. Above average volume

I’m sure I could alter that criteria further but I’ve been happy with the results this provides. However, I do strongly suggest you consider scanning through your own criteria to find assets that may better fit your own investment needs. For me, this returns a strong list of optionable assets for consideration.

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Ok, that’s enough from me, let’s get into the list of stocks under $20 with weekly options for December 2024.

List of stocks under $20 with weekly options for December 2024
List of stocks under $20 with weekly options for December 2024

List of Stocks Under $20 with Weekly Options for December 2024

1. ACI – Albertson’s Co.

Today’s Price – $19.52

Sneaking into today’s list is ACI or Albertson’s Companies Inc. It’s been awhile since Albertson’s even existed near me. HEB and Walmart have largely smothered other grocers here in Texas. Still, they are a brand I’ve been familiar with since childhood and are probably many area’s go to grocery store.

From a buy and hold perspective they haven’t performed well since a parabolic rise back in 2021 but they do seem to have stabilized well within the $16 – $20 dollar range. Fundamentally, they look acceptable but the price return just hasn’t followed. However, for options traders looking to make a play Albertson’s could be more than capable.

At a one month expiry, the ATM put offers approximately 2.3% in premiums and the ATM call is just higher at 2.8%. This appreciates annually to somewhere in the neighborhood of 28%. Not bad at all on just $1,952 in capital as of today. Still, most of the liquidity is on the monthly expiration’s so if you’re strictly wanting weeklies be sure to check the open interest.

2. GOLD – Barrick Gold Corp.

Today’s Price – $15.46

At number 2 is Barrick Gold Corp or ticker symbol: GOLD. With the gold markets generally viewed as a safe haven asset now may be just the time to consider a covered call campaign. I think most would agree, the markets are frothy and the economy seems shaky, at best. Although, Barrick Gold has been in a downtrend since October so do be aware gold may not be the haven it once was.

That said, liquidity is stellar on this one at most strikes and the premium is more than acceptable for a stock under $20. For example, at 61 DTE, I could initiate a cash secured put 10% OTM for 1.8% in premium. Annualized that adds up to over 20% with a 10% margin of safety. Pretty awesome for a stock at $15 per share.

3. AEO – American Eagle Outfitters

Today’s Price – $16.69

Back on our list of stocks under $20 with weekly options for December 2024 is American Eagle. They didn’t make the cut in recent months having jumped over $20 per share but for those seeking another candidate here it is.

Liquidity is not an issue near or at the money on virtually every expiration. However, it’s always good advice to be aware of the open interest prior to trading.

Fundamentally, they appear to be weakening but that may just be my own bias. I don’t personally wear their clothing any more but I’m assuming they still appeal to a younger audience. In my teens and 20’s they were a staple in my closet for whatever that’s worth.

4. M – Macy’s Inc.

Today’s Price – $16.24

Another returning candidate to our list is Macy’s Inc. I’ve included it again mostly because I read an article suggesting younger shoppers are revitalizing mall’s across the country. I don’t know how true that is everywhere but can confirm in my area that has in fact been the case. Of the two trips I can remember making to the mall this year it was full of shoppers. Should that be the case in other parts of the country we may just see Macy’s make an incredible comeback.

As for their options market, volatility is almost always elevated which means the premiums are very attractive for a stock at this price point. That’s mostly due to the 10 year downtrend they’re in but for those brave enough to test the waters they’ll be rewarded with above average premiums. Currently, the ATM call returns 3.4% or 40% annualized!

5. KEY – Keycorp

Today’s Price – $17.09

Checking in for the very first time to our list is KEY or KeyCorp bank. I’m not at all familiar with KeyCorp but they do offer the would be options trader plenty to consider. Fundamentally, they look to be a little erratic. Some years they perform well and others, not so much. Still, for someone needing a financial play KEY could make sense. Additionally, most analyst’s have them picked to outperform, for what that’s worth.

From the options side, apparently others have taken notice of KeyCorp as well because liquidity is no problem. Even LEAPS at 754 DTE have ample liquidity and a respectable bid/ask spread. This isn’t true for most sub $20 stocks. So, it’s worth noting investor’s are likely interested in KeyCorp for the long term and on that merit alone I added them to the list.

6. NLY – Annaly Capital Management Inc.

Today’s Price – $19.02

At number 6 on our list is Annaly Capital Management and if not for one glaring problem they would be here for good reason. Unfortunately, that problem is the state of this particular stock. NLY has been in a downtrend for so long I’m not sure they even know what can be done to increase shareholder interest or value. As such, I would tread carefully with this one. Keep the trades short and don’t stick around too long.

Having said that, the “for good reason” comment is with regard to their options market and their dividend yield. If you’re willing to take the risk you’ll be handsomely rewarded, possibly to the tune of 53% annually!

7. TRIP – TripAdvisor Inc.

Today’s Price – $13.79

For, I think the first time on this list, Trip Advisor. They almost seem like an afterthought in the travel space but they’re still out there making a go of it so I’ve included it here. Admittedly, there was a time in my life when Trip Advisor was my go to travel shop, but so to was Priceline, which appears to have been gobbled up by Booking Holdings, so take that with a grain of salt. Maybe others still view them as their travel authority but from the long term downtrend, investor’s don’t seem interested.

However, if you’re considering a short term play the premiums look down right stellar. For instance, at 26 DTE, the $13 strike put is trading at $.40 or 2.9% and the ATM $14 strike is $.80 or 5.8%. Just incredible, in my opinion.

All said, it’s still another one to tread carefully into. I don’t see the bigger picture looking all that bright, at least not as I see it today.

8. PCG – PG&E Corporation

Today’s Price – $19.82

PCG is an interesting play and honestly it’s not one that’s showed up on my radar for many years. I owned them for a period back in 2017 for their dividend but it seems I (and everyone else) dumped them about that time. They dropped from a high of $71.55 per share to as low as $3.55 a share. WOW! That’s a full on collapse if there ever was one and while time is short tonight I’m very curious what happened here to cause such a fall.

Regardless, they appear to be on the mend and price has traded back up to about $20 in recent years. For an options play, more than likely you’ll have to look out to March 2025 or beyond but in that area, liquidity and premium seems acceptable.

Almost forgot, I had to extend my search to include companies that had negative free cash flow per share to turn up numbers 8, 9, and 10 on our list. That almost certainly means they aren’t intended to be held for any duration, at least in my opinion.

9. WBA – Walgreen’s Boots Alliance

Today’s Price – $9.55

Ah, Walgreen’s, you didn’t do anything wrong but you just didn’t do enough right either. WBA used to be a staple of the American economy but has been tossed aside to the waste bin of yester-year. At least that’s the image in my mind when I consider the state of Walgreen’s today. Who knows, with the right direction, maybe they can turn it around. I was saying the same about Macy’s less than a year ago and they seem to be surviving, so anything is possible.

Still, for those interested to make an options play I may consider a collar position here just to take advantage of the attractive 10% dividend. For example, you may consider purchasing 100 shares and sell an OTM call to finance purchasing an ATM put as protection. Should the stock fall you’ll be 100% covered with the put, you’ll gain some premium from the call, and you’ll pocket the dividend. Not too difficult to earn a quick 5% on the cash committed. Additionally, as interest rates fall and 5% risk free returns evaporate, plays like will become even more attractive.

10. MARA – Mara Holdings Inc.

Today’s Price – $19.96

Last but not least, for the bitcoin hodlr’s out there, is MARA. Not a company I’d want to hold long term for sure but if premiums are what you’re after, you’ve found the holy grail. Mara holdings has a relative IV of just 38% tonight but volatility for almost every expiration is over 100%! Basically, what that means, is relatively speaking MARA’s implied volatility is lower than usual and it’s still stratospherically high. To add further context, the S&P 500 just went through a spike in volatility and the 26 DTE contracts only have a 19.46% implied volatility. Compare that to MARA at 126.80% and you’ll see what I mean. We just went through a market volatility spike and it didn’t reach anywhere near MARA. Just incredible.

It’s crazy really but it’s a premium seekers dream. Currently, a cash secured put ATM would return 11.2% or 134% annualized! How’s that for a night cap on our list of stocks under $20 with weekly options for December 2024?

Now, be on your toes, and I do mean all the way on them. In my opinion, this one will eventually turn over and die leaving any “hodlr’s” with a large bag of nothing for their efforts.

Final Thoughts

This will be the very last list of 2024. I hope as I’ve shared them this year you’ve found a play or two you hadn’t considered and that they were wildly profitable! Additionally, I think saving MARA for the last one on the last list is as fitting a way to round out 2024 as any. I really am just blown away at the premiums available on that one.

All in all, 2024 has been a crazy year and it’s increasingly likely 2025 will try to out do even that. I wish each of you success in the year or years ahead and again encourage caution with these or any options trades in the future.

Until the next post.

God bless,

Jeff