Don here...
Blake just spotted energy stocks paying higher yields than bonds while crude sits at $58 per barrel.
Most traders wrote off the sector after the crude selloff.
Blake's showing you how to collect premium, lower your cost basis, and stack dividend yields above 5.7% in companies still making higher highs.
Everyone's focused on the S&P grinding higher on lighter volume during holiday week. Blake's hunting for stable, profitable companies with strong balance sheets. His screen filtered for high tax rates.
The logic is simple. Companies exhausting all tax deductions while still paying high rates are genuinely profitable.
BP emerged as the standout opportunity.
The stock yields 5.54% in dividends and is forming what could be another higher low at $36. Blake's strategy involves selling the $36 put to collect $0.90 in premium, which drops your cost basis to $35.10.
At that price, the annual dividend yield jumps to 5.7%. That's higher than bonds, higher than treasuries, and you're positioned in a company showing technical strength despite crude's weakness.
Blake detailed several other compelling setups in the energy sector:
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ExxonMobil continues making higher highs and higher lows with a clear 5% move from $114 to $120 in sight
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EOG Resources sits at a higher low with 3% upside to $110 and offers a 3.92% dividend yield after factoring in your lowered cost basis
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Chevron bounced off six-month lows with an engulfing candle at support, delivering a 4.65% annual yield after premium collection
Crude oil provides supportive backdrop for these trades. It found support at $56, the annual fair price that's held three times before.
Blake sees potential moves to $62, then $68 if it breaks through resistance. Even if crude just stabilizes without rallying, the strongest energy companies should continue climbing.
Blake's approach stacks three income streams.
First, collect premium selling puts at support levels.
Second, if assigned, your lower cost basis increases the dividend yield. Third, sell calls at resistance for additional income while waiting for the next dividend payment.
The risk is straightforward. The market could push another 5% higher from here, but Blake calculates 2000 points of downside risk back to April lows. Energy stocks with high yields and strong fundamentals offer defined risk exposure with multiple ways to profit.
👉 Click here to watch Blake break down the exact strikes, premiums, and dividend calculations
To your success,
Don Kaufman
Chief Market Strategist, TheoTRADE
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