Oil prices slid this week as recession fears hit the energy markets. However, today’s jobs report showed that while the economy may be slowing, the labor market is strong with a better-than-expected 372,000 jobs added in June.
I am recommending we sell a put on Devon Energy (DVN). We last traded this independent oil and gas exploration and development company in Options Income Blueprint back in 2018. However, we have had success trading it recently in the Income Masters program.
The stock bounced off the $50 level this week, which is where I want to sell a put.
Current Stock Price: $54.16
Action: Sell to open the DVN Jul Monthly (7/15) 50 Put
Current Option Price: $0.43-$0.47
Recommended Limit: Set your initial limit order at $0.45. You can go as low as $0.35, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, July 15
Potential Rate of Return: 0.9% in eight days, or 41% annualized, if this option expires worthless