Devon Energy (DVN) stock has been treading water since its Q1 results were released on May 8. This is good for investors who have been short its out-of-the-money puts, whose premiums are sinking. DVN stock closed at $49.17 on May 9, and as of May 26, it was at $48.07.
This is good news for investors who short the out-of-the-money (OTM) puts. That is because as long as the stock does not crater, DVN put option premiums will wither. That allows the short-put investor to make money as the options fall in price.
