• Skip to main content
  • Skip to primary sidebar
  • Markets
  • Trade Ideas
  • Reflections
  • Links
  • Trading Program
    • Spec Model Trading Manual
    • Spec Model Trades
    • Spec Model Positions
  • Income Model
    • Income Model Trading Manual
    • Income Model Trades
    • Income Model Positions
  • Watch List
    • Watch List: Spec Long Plays
    • Watch List: Spec Short Plays
    • Watch List: Income Plays
  • About
    • Privacy Policy
    • Terms of Service
    • Terms of Participation

Zach Scheidt

Helping families build wealth so they can focus on what really matters

December Income Plays for Holiday Fun

December 6, 2021 at 10:54 am by Zach Scheidt

Stocks are on the move this December, with many popular names selling off sharply. That sets up a perfect opportunity for you to cash in on key December income plays.

While the market action can be discouraging for some investors, volatility actually creates unique (and lucrative) income opportunities. Over the past few weeks, I’ve introduced you to my favorite income strategy that allows you to generate instant payments from your favorite stocks.

And when markets are more volatile (like they are today), the strategy gives you even larger payments.

So today, I wanted to share three income opportunities that you can consider for your account today.


[Editor’s Note: If you like these income ideas — or would like to see a live portfolio of actively managed income plays, please fill out the short form below.

I’m putting the finishing touches on a live trading service that gives you actionable trades throughout the week — with alerts for when to enter, when to exit and exactly how to manage a portfolio of income plays.

If you’d like to be first to know when this service is available — and help test out this brand new trading service, sign up for notifications below!

(Of course there’s no obligation. When you sign up, you’ll also receive periodic market insights from me.)


Now, let’s jump into three income plays you can put in your account today!

December Income Play #1: The Trade Desk

Shares of The Trade Desk Inc. (TTD) broke to a new all-time high in November before pulling back with the market’s recent selloff.

The Trade Desk (TTD)

The company offers a cloud-based marketing platform that helps small businesses build and manage advertising campaigns. And in today’s environment with many new small businesses starting up, this service is incredibly valuable.

That’s why I expect the stock to find support near the 50-day moving average (the green line you can see in the chart above).

If you sell January $80 put contracts for TTD, you can receive up to $4.50 (or more) per share in income. And by selling these contracts, you’re agreeing to buy shares of TTD at $80 — more than 10% below where the stock is trading right now.

December Income Play #1: TDD

The table to the left shows some important information about this income play.

  • If you sell one put contract, you can expect to receive $450 of income.
  • You’ll have to set aside $8,000 in case you’re required to buy shares of the stock.
  • There are 46 days until January expiration.
  • Your $450 in income represents a 5.63% return on the $8,000 set aside.
  • The annualized yield (if successful) is 44.63%.

For more information on how income trades like this work, make sure you check out the series on this income strategy here.

As long as TDD closes above $80 on January 21st, you’ll get to keep your income and the put contracts should expire and disappear from your account. Please make sure you keep enough buying power in your account in case you’re required to buy shares at $80.

December Income Play #2: Marathon Digital

Marathon Digital Holdings (MARA) is a Bitcoin mining company tied to the cryptocurrency market. Since cryptocurrencies have pulled back in recent weeks, shares of MARA have come under pressure.

The stock is likely to find support near the 200-day average (the blue line in the chart below). This has been a key support level throughout the year for MARA.

Marathon Digital Holdings (MARA)

If you sell the January $30 put contracts for MARA, you can receive up to $3.50 (or more) per share. In exchange for this income, you’re agreeing to buy shares of MARA for $30 (well below the current market price.

December Income Play #2: MARA

The table to the left shows the statistics for this income play:

  • If you sell one put contract, you’ll receive $350 of income.
  • You’ll need to set aside $3,000 in case you’re required to buy shares of MARA.
  • There are 46 days left until January expiration.
  • Your $350 in income represents an 11.67% return on the $3,000 set aside
  • The annualized yield (if successful) is 92.57%

Keep in mind this is a particularly speculative play. Shares of MARA could continue to fall. But at the same time, the amount of income you’re receiving from this play gives you a significant amount of cash to offset your potential risk.

As long as MARA closes above $30 on January 21st, you’ll get to keep your income and the put contracts should expire and disappear from your account. Make sure you keep $3,000 in available buying power in case you’re required to buy shares.

December Income Play #3: Zillow Group

Zillow Group (ZG) has struggled this year after the company decided to bail out of it’s home buying venture.

Still, the company’s core business should continue to grow in a strong residential real estate market. And shares moved higher Friday as it now appears the company’s exit from its home buying business should be less costly than many anticipated.

Zillow Group (ZG)

If you sell the January $55 put contracts for ZG, you can receive up to $2.80 (or more) per share. In exchange for this income, you’re agreeing to buy shares of ZG for $55 (about $5 per share below the current price).

December Income Play #3: ZG

The table to the left shows the metrics for this income play:

  • If you sell one put contract, you’ll receive $280 of income.
  • You’ll need to set aside $5,500 in case you’re required to buy shares of ZG.
  • There are 46 days left until January expiration.
  • Your $280 in income represents a 5.09% return on the $5,500 set aside.
  • The annualized yield (if successful) is 40.40%

As long as ZG closes above $55 on January 21st, you’ll get to keep your income and the put contracts should expire and disappear from your account. Make sure you keep $5,500 in available buying power in case you’re required to buy shares.

Three Rules for Selling Puts

Selling put contracts can be a reliable way of collecting income from the market, which increases your investment wealth over time.

To make sure I’m getting the most out of this strategy (and carefully managing the risk from these plays) I always follow these three rules:

  1. Sell puts on stocks I’m willing to buy — Make sure you do your research on individual stocks, and pick companies with healthy businesses.
  2. Agree to buy shares at a discount to the current market price — This way, you create a buffer of safety in case the stock pulls back.
  3. Sell puts that offer lucrative amounts of income — You’re getting paid for your agreement to buy shares. Make sure that payment is enough to make the trade worthwhile.

Once again, these are three examples for collecting income from stocks in today’s market. They’re not specific recommendations, but the trades do show how you can use this strategy to collect income.

If you would like to keep track of trades like this in a live — actively managed — investment account, make sure you fill out the form below. I’ll keep you posted on when this service is available and give you the chance to be first to try it out!

Here’s to growing and protecting your wealth!

(Trade procedure: 5 minutes after this notification posts, I will enter the trade on my brokerage platform. Once filled I will edit this post to include execution prices.)

Please note: I am placing these trades in my own account. And while I notify the group of all trades 5 minutes before I place my own personal trades, this creates a conflict of interest. Please review all disclosures and agreements included with your subscription packet.

Filed Under: Public, Trade Ideas, Uncategorized Tagged With: $MARA, $TTD, $ZG, Investment income, put selling

Primary Sidebar

Get your FREE copy of my watch list




You’ll also receive my (almost) daily market insights — you can cancel at any time.

stock market is bad

The Stock Market is So Bad, It’s GREAT!

I’m kicking myself for not being better prepared. The stock market is so bad, it’s primed for a big-time rally!

gold rally

Time for Gold to Rally!

The gold rally has been held back by two important factors. But now that these two challenges are going away, gold could surge!

share buybacks

Terrible Timing to Stop Share Buybacks

A bear market is a terrible time to stop share buybacks. But some companies are using this opportunity to build shareholder value!

official bear market

What I’m Watching as an Official Bear Market Looms

Stocks are just a couple percentage points away from official bear market territory. Here’s how I’m positioned heading into next week.

Hated homebuilder stocks

I’m Bullish on Hated Homebuilder Stocks

Shares of hated homebuilder stocks are lower this year. But this area offers tremendous value that could lead to gains this summer!

stock market new season

Can the Stock Market Shift to a New Season?

After seven straight weeks of losses, the stock market may be shifting to a new season. Here’s why I’m optimistic about the week ahead.

good stocks fall

Why Good Stocks Fall

Good stocks fall when investors need cash (and have no options left). That’s good news and points to a rebound in sight!

value stocks outperform

April was Brutal — But There Are Still Winning Stocks

Stocks fell in April — booking the worst month for the Nasdaq since the dot-com crisis. But despite the carnage value stocks outperformed

Stock Market Indicator

This Stock Market Indicator Points to a Bounce

There’s a lot of fear in today’s market. But despite the selling, one stock market indicator is signaling a bounce!

Three reasons to buy Meta

Three Reasons to Buy Meta Ahead of Earnings

Facebook’s parent Meta Platforms is scheduled to release earnings this week. Here are three reasons I chose to buy Meta ahead of the report.

Investors are buying stock insurance

Investors Buying “Stock Insurance” – Here’s How to Profit

The price for “stock insurance” — or put contracts that protect investors’ wealth — is rising. Here’s how to use that to your advantage!

Barbell Approach

For Stronger Investment Returns, Use THIS Barbell

Splitting your investment account into a “safe” portion and more “aggressive” positions can help to manage risk and improve returns.

This Market is FULL of Great Investment Plays

There is no shortage of opportunity in today’s market. But you have to know where to look for the best investment plays.

Quarterly Trading Update

Quarterly Trading Update — March 2022

Now that the first quarter is over, I wanted to share an update on how our trading models performed.

gold investors

Three Options for Gold Investors

As precious metal prices rise gold investors have quite a few options. Here are three ways to profit from higher gold and silver.

DISCLAIMER: Stocks and options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the stocks and options markets. Don't trade with money you can't afford to lose.

This is neither a solicitation nor an offer to Buy/Sell stocks or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this page. The past performance of any trading system or methodology is not necessarily indicative of future results.

All trades, patterns, charts, systems, etc., discussed on this page are for illustrative purposes only and not to be construed as specific advisory recommendations. Information contained on this site or in any correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Arete Publishing, LLC · Copyright © 2022 · All Rights Reserved
Privacy Policy · Terms of Service · Terms of Participation · Log in