Oil is still oversold at $61.76.
However, it may not remain so oversold for long.
Not only would that be great news for oil giants like Exxon Mobil (SYM: XOM), which yields 3.84% — but also to the YieldMax XOM Option Income Strategy (SYM: XOMO), which yields 3.42% and pays a dividend every month.
So, why buy now?
What’s the urgency?
If things go awry between the U.S. and Iran regarding nuclear talks, Israel could strike Iran, as they’ve warned.
Multiple US officials familiar with the latest intelligence assessments told the network that Israel’s preparations have raised alarm in Washington. “The chance of an Israeli strike on an Iranian nuclear facility has gone up significantly in recent months,” said one unnamed source with access to US intelligence, as noted by Middle East Monitor.
“And the prospect of a Trump-negotiated US-Iran deal that doesn’t remove all of Iran’s uranium makes the chance of a strike more likely.”
In addition, as noted by NBC News, “The cost of failure of the talks could be high. Iran‘s arch-foe Israel sees Iran‘s nuclear program as an existential threat and says it would never allow the clerical establishment to obtain nuclear weapons.”
If there is war, it’s like to destabilize the region, which could send oil prices gushing higher.
Potential escalation in the region is the strongest catalyst for oil and for oil-related, dividend paying giants, like Exxon Mobil and for dividend-paying ETFs such as the YieldMax XOM Option Income Strategy (SYM: XOMO).
About the XOMO ETF
The YieldMax XOM Option Income Strategy seeks current income; exposure to the share price of the common stock of Exxon Mobil Corporation, subject to a limit on potential investment gains, is the secondary consideration.
The fund will seek to employ its investment strategy as it relates to XOM regardless of whether there are periods of adverse market, economic, or other conditions and will not seek to take temporary defensive positions during such periods. The fund advisor uses a synthetic covered call strategy to provide income and indirect exposure to the share price returns of XOM.
Recent Price: $12.34
Expense ratio: 0.99%
Yield: 3.42%
Distribution rate: 41.95%
Assets under management (AUM): $48.1 million
Further Reading: Oil Stocks Surging (And the #1 play to profit)
With Trump back in office, U.S. oil stocks are once again surging.
These could lead to the greatest Oil bull market since the 1970s…
And with this low-risk oil play…
You could stand a chance to bank monthly income AND capital huge gains from this oil grab-all.
It has nothing to do with stocks, ETFs and options…
But for those in the know…
They could bank a windfall in today’s market.
