Top 10 Stocks to Watch: December 2024

We are looking at the 10 best stocks to watch in December 2024. Which companies have liquid options and reports earnings in December 2024?  

H2: Market Update: S&P 500 E-Mini Futures up 24.88% year to date 

After last month's update, sellers did indeed quickly find footing and pushed down to $5,724.25. However, that’s where sellers lost control and buyers once again took command, pushing price swiftly to $6,053.25 on the Nov. 11 . 

Since then, we dipped back to the $5,850 level and then returned to the current all-time high level around $6,050. The price action over the last two weeks indicates a retest to the downside followed by a return to near all-time highs. 

The market remains in a bullish stance. But sellers are likely not satisfied with the last down move and may want to make a more substantial push to the downside. If that happens, look for sellers to target the $5,650 level. 

However, due to the current bullish nature of the market, it’s likely that the market will continue to push to new all-time highs. If that happens, look for a retest of the $6,000 level before continued price action higher. 

H2: A note on earnings trades 

To capture the bulk of the volatility of earnings announcements, earnings trades are often executed either the day before or on the day of the earnings announcement. However, earnings trades can also be placed days or weeks before an earnings event, which could lead to early profit taking.  

Alternatively, placing a trade shortly after an earnings announcement can be a strategic choice to circumvent the binary nature of the event. Evaluate each trade in a way that allows you to execute the position that matches your strategy.   

If you're considering a trade going into an earnings event, one approach is to initiate the position in the monthly options contract that follows the earnings event. This strategy offers flexibility. Should you need to defend your position – perhaps due to unexpected market movements – you have the choice to 'roll' it out to the subsequent monthly options. Rolling out the position in this way allows you to extend its duration and potentially collect more premium, providing a buffer against market volatility. 

H2: Top 10 stocks to watch in December 2024 

1. Marvell Technology (MRVL) – December 3, After the close 
2. Chewy (CHWY) – December 4, Before the open 
3. Foot Locker (FL) – December 4, Before the open 
4. Dollar General (DG) – December 5, Before the open 
5. Lululemon Athletica (LULU) – December 5, After the close 
6. DocuSign (DOCU) – December 5, After the close 
7. C3.ai (AI) – December 9, After the close 
8. GameStop (GME) – December 11, After the close 
9. Micron Technology (MU) – December 18, After the close 
10. Nike (NKE) – December 19, After the close 

Marvell Technology (MRVL) 

Marvell Technology, Inc. designs and develops integrated circuits for data storage, networking, and communications markets. MRVL is currently up 48.82% year-to-date. Its current IVR is 54.2, with November IVx at 62.6, December IVx at 52.4, and its liquidity is rated 3 out of 4 on the tastytrade platform. 

MRVL is a medium-low priced stock, so medium sized accounts could consider undefined risk positions. A one-standard deviation short strangle sets up well. 30-delta short strangles also set up well. Watch out for strikes with wider bid-ask spreads. Use the most liquid strikes. 

2. Chewy (CHWY) 

Chewy, Inc. operates as an online retailer of pet food, pet products, and pet medications. CHWY is currently up 43.66% year-to-date. Its current IVR is 24.9, with November IVx at 95.3, December IVx at 64.8, and its liquidity is rated 3 out of 4 on the tastytrade platform. 

CHWY is a lower priced stock, but I would still suggest that medium-sized accounts or larger could consider undefined risk positions. A 20-delta short strangle sets up okay. 30-delta short spreads also set up decently. You may also want to consider a short diagonal spread if you are comfortable with them. 

3. Foot Locker (FL) 

Foot Locker, Inc. is a retailer of athletic footwear and apparel. FL is currently down 17.91% year-to-date. Its current IVR is 76.3, with November IVx at 95, December IVx at 79, and its liquidity is rated 3 out of 4 on the tastytrade platform. 

FL is a lower priced stock, and smaller-sized accounts could consider undefined risk positions. A 20-delta short strangle sets up well. 30-delta short spreads also set up well. Short diagonal spreads also set up okay. 

4. Dollar General (DG) 

Dollar General Corp. operates discount retail stores offering a wide range of merchandise, including consumables, seasonal items, home products, and apparel. DG is currently down 44.78% year-to-date. Its current IVR is 96.7, with November IVx at 76.2, December IVx at 62.6, and its liquidity is rated 3 out of 4 on the tastytrade platform. 

DG is a medium-priced stock, so medium-sized accounts or larger could consider undefined risk positions. 18-delta short strangles set up well. Directional spreads with your preference of risk also set up well, if you have a directional assumption. 

5. Lululemon Athletica (LULU) 

Lululemon Athletica designs and retails athletic clothing and accessories for women, men, and female youth. LULU is currently down 37.37% year-to-date. Its current IVR is 85.3, with November IVx at 62.3, December IVx at 51.7, and its liquidity is rated 2 out of 4 on the tastytrade platform. 

LULU is a high-priced stock to trade, so only large-sized accounts should consider undefined risk positions. If you do want to place an undefined risk position in LULU, a one-standard deviation short strangle sets up well. Most accounts will want to take defined risk positions. A 20-delta short iron condor sets up well. Directional spreads with your preference of risk also set up well, if you have a directional assumption. 

6. DocuSign (DOCU) 

DocuSign provides electronic signature solutions that facilitate agreements digitally. DOCU is currently up 37.34% year-to-date. Its current IVR is 69.4, with November IVx at 55.9, December IVx at 50.9, and its liquidity is rated 2 out of 4 on the tastytrade platform. 

DOCU is a medium-priced stock, so medium-sized accounts or larger could consider undefined risk positions. 20-delta short strangles set up well. Directional spreads with your preference of risk also set up well, if you have a directional assumption. 

7. C3.ai (AI) 

C3.ai provides enterprise artificial intelligence software for building enterprise-scale AI applications. AI is currently up 24.26% year-to-date. Its current IVR is 61.4, with November IVx at 95.1, December IVx at 82, and its liquidity is rated 3 out of 4 on the tastytrade platform. 

AI is a lower priced stock, but medium or larger accounts should only consider undefined risk positions. 20-short strangles set up well. 25-delta short directional spreads also set up well. 

8. GameStop (GME) 

GameStop retails video games, consumer electronics, and wireless services. GME is currently up 76.87% year-to-date. Its current IVR is 24, with November IVx at 137.9, December IVx at 132.9, and its liquidity is rated 3 out of 4 on the tastytrade platform. 

GME is a low-priced stock, but the vast majority of accounts should not consider undefined risk positions. 20-delta short put spreads set up decently. Due to skew, most call spreads will not set up well. Most traders will find potential trades if they have a bullish bias.  

9. Micron Technology (MU) 

Micron Technology manufactures semiconductor devices, primarily DRAM and NAND memory and storage products. MU is currently up 15.13% year-to-date. Its current IVR is 59.4, with November IVx at 63.4, December IVx at 52.7, and its liquidity is rated 4 out of 4 on the tastytrade platform. 

MU is a medium to high priced stock, so only medium-sized accounts or larger should consider undefined risk positions. A one-standard deviation short strangle sets up well. 25-delta short spreads also set up decently. 

10. Nike (NKE) 

Nike designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories. NKE is currently down 27.04% year-to-date. Its current IVR is 77.5, with November IVx at 45.1, December IVx at 36.6, and its liquidity is rated 4 out of 4 on the tastytrade platform. 

NKE is a medium-priced stock, so medium-sized accounts or larger could consider undefined risk positions. 20-delta short strangles set up well. Directional spreads with your preference of risk also set up well, if you have a directional assumption. 

Ryan Sullivan is an active options and forex trader and programming producer for the tastylive network.

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