Friday handed you a tape with nothing in it. Crude knifed to fresh lows again and again.
The equities locked up for an hour and a half. They ground out lower highs and lower lows.
A tape like that bleeds an account one scalp at a time. You force a click, you get chopped, you force another.
When a member asked me about an oil name during that stall, I walked through a calmer way to get paid.
It is a setup that could collect 2.3% in a month on a stock worth owning, with a 4.6% cushion before any trouble.
Here is the idea I laid out on ConocoPhillips.
A Tape That Pays You Nothing for Trying
For most of Friday the equities went sideways. No follow-through came in either direction.
Crude was its own mess. It melted to new lows all session.
The fast money kept clicking into that chop. It kept getting handed losses.
Days like this punish effort. The harder you force a tick out of a stuck market, the more it costs you.
That is the moment to stop hunting scalps. Start thinking instead about a position you can set and let work.
Why ConocoPhillips Came Up
A member asked me what I thought of ConocoPhillips for the longer term. The chart gave me a clear way to answer.
COP printed a buy signal on Thursday. It is sitting at that same price now, so the same entry is still on the table without chasing it.
The money flow is above the zero line and trying to accumulate. It is not above the average yet, so this is buyers stepping in early.
There is a bullish divergence on the chart as well. There is no bullish cluster behind it, the divergence on its own is enough to set up a decent trade.
On the upside, the chart points to a move to at least 111. Above that sits a gap to fill up around 116 to 117.
The Choice Before You Click Buy
A good signal is only the start. The next decision is whether to trade the stock outright or sell options against it.
I would rather get paid to wait when the premium is rich enough. Selling a put puts income in your account up front.
If COP stays up, you keep the credit and move on. If it falls to your strike, you own a stock you already wanted, at a lower price than today.
How the Setup Would Look on COP
I like to sell puts close to the 25 delta. On COP that lands you between two strikes worth a look.
The choice comes down to how much income you want against how much room you give yourself. Here is how the two compare:
- The closer strike pays more, around 3.4%. The trade-off is a smaller buffer, since the stock only has to fall about $1.30 to reach it.
- The 104 strike pays 2.3% on risk for the month. COP would have to fall 4.6% before the trade is in trouble, and that is a price worth owning the stock at.
I lean toward the strike with the bigger safety net. The extra premium has to clearly earn that tighter cushion before I give up the room.
What Each Outcome Would Look Like
This is where selling the put earns its place. Walk through the three ways it can go.
- COP drifts sideways or higher. The put expires and you keep the credit. On the 104 strike that is 2.3% for the month.
- COP gets assigned to you. You own a name you wanted at 104, with the premium lowering your cost further. The 3% dividend yield means you get paid to hold it.
- COP drops hard and fast through the strike. This is the only outcome that stings. The 4.6% cushion absorbs ordinary noise, not a violent gap.
Every path except the fast crash leaves you paid or owning a quality name at your price. That is the kind of math worth reaching for on a day the futures refuse to cooperate.
Buying It Outright Is Another Option
If you do not want to manage options, flat out buying COP here is reasonable. The buy signal is the same one driving the whole idea.
The 3% dividend means you collect income even if the stock just sits. Selling the put pays you more to be patient, with a discount baked in if it dips to your strike.
Why an Idea Like This Beats Chasing the Chop
On a tape that gave the scalpers nothing, this is the type of position you set and let work.
There is no babysitting every tick. There is no slippage eating your fills, and no revenge trade after a stop-out.
You pick the price you would own it at. You get paid to wait there, and the dividend backs you up the whole time.
The takeaway is simple. When the fast tape is chopping you to pieces, pull up a quality name with a fresh signal and ask whether selling a put pays you enough to wait.
Some of the best ideas on an ugly day come from the trade you would hold, not the one you chase.
Every read I call inside the 10% Club comes with the level, the reason, and the structure behind it.
Entry, stop, target, and the logic behind every decision to click or to pass. Every session, no exceptions.
Click here to learn more and join us before the next opening bell.
Blake Young
Senior Market Strategist, TheoTRADE
