Exxon Mobil (XOM) stock is looking very attractive to value investors. For one, it will likely raise its dividend in late October. Second, its P/E multiple is very low vs. its history. As a result, shorting out-of-the-money (OTM) puts is profitable for options traders.
This strategy allows traders to gain additional income on top of the 3.34% dividend yield that XOM stock has today. By selling short these OTM puts those who already own XOM stock can enhance their dividend yield with additional short-put income.
