Energy
CVX
Chevron Corporation
Income strategies for Chevron (CVX) using covered calls and cash secured puts. Dividend aristocrat with energy exposure.
Monthly Premium1.0-1.8%
Annualized Return12-22%
Stock Price$150-170
IV RankModerate (28-42)
Options LiquidityGood
Dividend Yield4.0%
Why CVX for Covered Calls & Cash Secured Puts?
CVX is a dividend aristocrat in the energy sector with 35+ years of dividend growth. Strong balance sheet and integrated operations provide stability through oil price cycles.
Example Covered Call Trade
CVXCovered Call
Strike Price$165 (5% OTM)
Expiration30 days
Premium$2.40 per share
Return If Flat1.5% ($240)
Return If Called6.5% ($1,030) + dividend
Keep Probability73% keep shares
Recommended Strategy for CVX
Conservative approach with calls 4-6% OTM. CVX's lower volatility vs XOM means lower premium but more predictable.
Risks to Consider
- Oil price dependency
- Energy transition challenges
- Capital intensive business
- Regulatory environment
Analyze CVX Covered Calls Now
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