- The SPDR S&P Oil & Gas Exploration & Production ETF provides an investor with access to the US medium and small size oil and gas producers.
- XOP has recently sold off the highs on the back of the new Covid Omicron variant which caused market participants to re-think the robustness of oil demand.
- We believe XOP is in a multi-year uptrend that is going to test from time to time the lower bound of the channel.
- A savvy investor can make a 22% annualized yield or own the stock at a 14% discount by entering the proposed trade.
For further details see:
XOP: High Implied Volatility, 22% Yield