Hello everyone! It’s hard to believe we’re already in November and that this year is nearing the end. I’ve said it before but this year has been trying in so many ways and if the same has been true for you please don’t give up. Don’t diminish Jesus’s light in your life for anyone or anything, ever! I’ve been guilty of that before and the result is always painful.
With that, it’s time we check in on our favorite affordable stocks and see which ones make the grade to be added to our list of stocks under $20 with weekly options for November 2024. So it’s clear, these stocks are selected based on criteria I find valuable for any trading candidate. The list could be culled further but this returns a respectable list from which to consider.
You may or may not agree but the criteria for the list of stocks under $20 with weekly options for November 2024 is as follows;
- Last price below $20
- Open interest above 5,000
- Positive Free Cash Flow per share
- Positive Net Margin
- Average Volume
Disclaimer – Before we jump in, please know most of these stocks should probably be avoided long term. After all, they’re typically under $20 for a reason, so proceed with caution.
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Now, without more needless chatter from me let’s take a look at the list of stocks under $20 with weekly options for November 2024.
Update: List of Stocks Under $20 with Weekly Options for December 2024
List of Stocks Under $20 with Weekly Options for November 2024
1. UAA – Under Armour Inc.
Today’s Current Price – $8.52
Checking in as the cheapest stock on our list is Under Armour Inc. They’ve made this list before and the first noticeable point I’d like to make is that they’ve maintained their price throughout 2024. Sure, that doesn’t speak well of them as an investment but as a trading candidate that’s more than acceptable, in my opinion.
Volume is limited at some strikes so do be careful before placing a trade. However, if you’re ready to start a covered call campaign or a cash secured put there are certainly worse ways to go. Under Armour is a respectable, well known company and any new trader will probably do well to use them as they learn the options trading ropes.
2. F – Ford Motor Co.
Today’s Current Price – $10.22
Number 2, and moving from lowest to highest, is Ford Motor Company. Ford’s stock seems perfectly comfortable between $5 to $15 and has been there for as long as I can remember. Therefore, I personally don’t look to Ford for any long term investment. That said though, similar to Under Armour above they’re a household brand and likely to be around for the future.
As such, I’m not overly concerned taking a trade here. Ford has incredible liquidity for a stock at this price point making it a terrific candidate for newer traders. However, let it be known that the premiums here are certainly nothing to write home about. Even now with relative volatility above 50% you’ll only receive $8 for a cash secured put at 12 DTE. To put that into perspective, that’s a whopping .007% return on risk.
Still, if you’re new to options trading and wanting to learn without fear of losing your house then I highly recommend Ford as a starting point.
3. VALE – Vale S. A. ADR
Today’s Current Price – $10.60
Next on our list of stocks under $20 with weekly options for November 2024 is Vale S. A. ADR. Vale trades under the ADR tag here in the US since they’re a Brazilian company but don’t let that keep you from considering them as a tradable vehicle. They offer excellent liquidity and lower premiums much like Ford or Under Armour above.
However, I’ve included them on this list due to their erratic dividend history. Find yourself holding shares here and you may be rewarded with a very healthy dividend check sometime down the line. That said, the dividend isn’t guaranteed so this stock is generally for those wanting to test the option waters without significant risk.
4. CLF – Cleveland Cliffs Inc.
Today’s Current Price – $13.27
At number 4 on our list is Cleveland Cliffs Inc. operating in the Materials sector. Should you find yourself wanting to play the steel markets then CLF should be on your radar. This company rarely moves outside of this price range but has incredible liquidity and premiums for the price point. Honestly, if I were just starting with options I’d probably consider this one above the others on this list.
Cleveland Cliffs is one of the few offerings on this list that open the options trading door all the way. What I mean is you could deploy just about any options strategy here and it would be worth the effort.
Still though, they aren’t the most recognizable company and should we face a precipitous market decline I don’t know how comfortable I am having too many eggs in their basket.
5. AAL – American Airlines Group
Today’s Current Price – $13.54
Sitting firmly in the middle of the pack is American Airlines. You know, that company that always loses your luggage! Regardless, they have the makings of a great options trading candidate. Currently AAL is offering about 3% on the ATM put option or around 36% per year. While 36% should be considered a long shot it’s what the numbers suggest as of today.
All told, the airline industry is still trying to overcome the Covid nightmare. That said, it’s still the fastest way to travel so I don’t see them going anywhere anytime soon.
6. ABR – Arbor Realty Trust Inc.
Today’s Current Price – $14.84
Making this list again for the second time this year is Arbor Realty Trust and for good reason. Currently, ABR is offering $.43 cents per share as a dividend or 11.59% annually! Add that to the above average premiums and you’ve got an incredible options trading vehicle.
I’m not in love with the erratic stock behavior but if you’re willing to weather a few storms then Arbor Realty is certainly one to keep an eye on. For example, should you decide to initiate an OTM covered call it wouldn’t be impossible to generate about $600-700 dollars in one year. That’s nearly a 50% return on risk, and that’s on an OTM strike. The return jumps considerably higher should you decide to trade ATM.
Truthfully, as I write this I’m wondering why I’m not currently invested here myself.
7. TRIP – Trip Advisor Inc.
Today’s Current Price – $16.13
At number 7 is everyone’s favorite travel website or maybe just that travel website you’ve heard of. Either way, as a long term investment I’d certainly steer away from holding them. However, liquidity and premiums are respectable for a stock in this price range so they shouldn’t be eliminated from consideration all together.
Over the last 5 years Trip Advisor has seen it’s stock stabilize in this range and barring any catastrophe’s in the near future I’m of the belief they will stay around this price. Still, historically they’re just one earnings call away from another big drop so do be on the lookout for earnings.
8. ET – Energy Transfer Partners
Today’s Current Price – $16.43
This list of stocks under $20 with weekly options for November 2024 just wouldn’t be complete without including Energy Transfer. Long a favorite of mine, ET offers a terrific dividend at a relatively stable share price. They are well known for consistently growing their dividend and even including the Covid decline have gained about 35% in share appreciation over the last 5 years. Which is really saying something given the 70% decline they endured during that crash.
Still though, the limiting factor with Energy Transfer is the below average premiums. They aren’t an overly volatile stock so premiums never seem to inflate much beyond where you’ll find them today. That said, I can personally attest to the fact that choosing ET over a riskier asset is in your best interest, barring some energy debacle.
9. DB – Deutsche Bank AG
Today’s Current Price – $17.05
While certainly not the bellwether they once were Deutsche Bank is trying to rebuild its former glory. Premiums are adequate and liquidity is acceptable but they have more work to do. However, if you’ve earmarked capital for allocation to the financial sector then trading here won’t cost you the farm.
Currently, at only 5 DTE the ATM put offers about 1.5% in premium or nearly 110% annually! Still, be on the lookout for headwinds and be sure to check liquidity at each strike before placing a trade.
10. SONY – Sony Group Corporation
Today’s Current Price – $17.73
Last but certainly not the least on our list is SONY. They’ve been making consumer electronics since I was knee high to a grasshopper and are still a leader in many of those markets. SONY has made this list thanks in part to a recent 5:1 stock split that occurred in October.
For this price, I wouldn’t feel remotely concerned owning shares or attempting any options strategy. Given the recognizable name power alone even a market decline could be weathered with some comfort knowing they’ll likely rebound. An aspect not generally inherent to stocks in this price range.
SONY offers a respectable premium, ample liquidity, and a share price that is stable. However, it does look as if they recently cut their dividend which isn’t the best of signs so do be aware before jumping in.
Final Thoughts
With 2024 nearing its end and 2025 bearing down I hope you’ll turn first to Jesus, then possibly to trading as you seek to enhance your income. That said, please don’t view this list as my selection of the best investment candidates at this price point. They are not! They are however a list of stocks I wouldn’t mind trading options on as of today.
Lastly, always be sure to exercise prudent risk management and never trade a stock you’re not comfortable with. I have more experience doing just the opposite of that than I care to admit.
Until the next post.
God bless,
Jeff
