ConocoPhillips (COP) stock has a 3.42% dividend yield, below its 5-year average, with a price target potentially 29% higher at $126.65. Since Nov. 6, 2025, when the quarterly dividend was raised to $3.36 per share, COP stock has been climbing. The stock could be undervalued, offering potential upside for investors.

Selling short out-of-the-money (OTM) put options on COP stock can provide additional monthly income. By selling OTM puts with lower exercise prices, investors can earn immediate yields of around 1.5%. This strategy allows investors to potentially benefit from the undervaluation of COP stock while generating income.

Investors can consider selling short OTM puts with different exercise prices and expiry dates to maximize income potential. By analyzing different strike prices and premiums, investors can select options that offer the best risk-reward balance. This strategy allows investors to capitalize on the undervaluation of COP stock while managing downside risk effectively.

Read more at Barchart: ConocoPhillips Has a 3.42% Annual Yield, but Short-Put Investors Can Make 1.5% Monthly