Don here...
Blake just uncovered something buried in today's inflation report that changes everything about how you should position for the rest of the year.
The BLS released their "catch-up" CPI data for October and November. The problem is they only captured three categories out of the entire report. New vehicles, used vehicles, and gas prices. That's it.
Meanwhile, the numbers they do have tell a different story than the headline 2.7% figure suggests.
Fuel oil is up 11% year over year. Utility pipe gas is up 9%. Electricity costs have risen 7%. These are the essentials that keep people warm in the winter.
Blake calls this hidden inflation inside a supposedly tame report.
This incomplete data creates a specific opportunity in utility stocks. Blake laid out four trades that could return 9% or more annually while providing significant downside protection.
VST is paying 5.57% for 30 days just for the willingness to own it at current prices. Drop down to the 155 strike and you get a 10% safety net with a 3% monthly return.
Edison International broke through 52-week highs today. The stock carries a 5.85% dividend yield with an ex-dividend date on January 7th. Blake sees potential for 8-10% appreciation on top of that yield.
Duke Energy has corrected 15% from its highs and is sitting at a support level with multiple buy signals. Dominion Energy offers nearly 2% monthly from put sales plus a 4% annual dividend.
The logic is straightforward. If the market believes inflation is cooling, rates get cut. When rates fall, bond prices rise. Utilities move with bonds but offer better income opportunities through options strategies.
[Click here to watch Blake break down each trade setup and the exact strikes he's targeting]
To your success,
Don Kaufman
Chief Market Strategist, TheoTRADE
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