Exxon (XOM) stock has done well over the last month, making money for investors who shorted puts in out-of-the-money (OTM) puts. XOM stock is up over 2.4% in the last month to $114.51 on April 4. That means that OTM puts have expired worthless and investors have kept the full yield they made when shorting the puts. This short put trade still looks good with strong oil and gas prices.
For example, last month in my Feb. 21 article, “Exxon's 3.27% Yield Is Attractive, But Short Put Income Plays Are Gaining Attention,” discussed shorting OTM puts for expiration on March 24. This theme is still in play, as XOM stock still has an attractive 3.18% dividend yield with its $3.64 annual dividend.
