ConocoPhillips Inc. (COP) stock has a 3.63% annual yield and may be up to 18% undervalued. Selling short out-of-the-money puts could be an income play, with a 1% monthly yield for 5% OTM COP puts. COP stock is trading at $92.67 on December 19, with a $3.36 annual dividend per share. Different surveys suggest different average yields for COP stock, but analysts’ price targets indicate it may be undervalued. Shorting OTM puts is one way to generate monthly income by setting a lower buy-in point and potentially higher income than owning shares outright.

Read more at Barchart: ConocoPhillips Stock Still Looks 18% Undervalued