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The S&P 500 seems to be stuck. Money is rotating inside equities but not flowing in. Bonds are selling off. Nobody wants to commit. This is just not the time to chase high-flyers.

With all of this in mind, I'm looking at one number before I buy anything right now: beta. Beta tells you how much a stock moves compared to the broad market. A beta of 1.0 means the stock moves roughly in line with the S&P 500. A beta of 2.0 means twice the volatility.

When the market swings 1% up or down, a beta-2 stock swings 2%. That's great in a trending market. But in a choppy, directionless mess? It's a recipe for whipsaw losses.

What I'm Filtering For

• I want stocks with beta below 1.0. Preferably the beta would be well below that mark.
• I want short puts that pay at least 2.5% return on risk. That's my minimum for the willingness to own shares.
• I want strong financials. This means companies that can survive a rough stretch without imploding.

Dividends are a bonus. If I can collect put premium, get assigned, and then collect dividends while the stock recovers, that'd be even better.

The Math on NextEra Energy

NextEra has a beta of 0.76. That means it moves about three-quarters as much as the S&P 500 on any given day. They pay a 2.7% dividend yield. If I sell an at-the-money put and collect $2.10 in premium, my cost basis drops to $80.90 on a stock trading at around $83.80.

Here's where beta matters. For me to lose money, NextEra would need to fall 3.5%. But with a 0.76 beta, the S&P 500 would theoretically need to drop 4.6% to cause such a move.

That's my cushion. The market has to fall harder than my stock for me to take a loss.

Procter & Gamble Takes It Further

Procter & Gamble has a beta of 0.36. It moves one-third as much as the market. They pay a 2.94% dividend. If I sell a put at the $143 strike and collect $3.75, my cost basis drops to $139.25. That's below the low of the entire year.

Even with earnings coming up, I'm protected. The position only loses if the company craters. With a 0.36 beta, that would require a market collapse of historic proportions.

Why This Matters Right Now

Capital is just rotating inside equities. A heat map of the market would show green and red scattered everywhere.

Money simply isn't coming in. It's shuffling. Bonds are selling off internally. Not foreign dumping, but domestic repositioning. The Russell hit record highs while borrowing costs reached four-month peaks. That kind of disconnect doesn't just resolve itself quietly.

When I see this kind of uncertainty, I don't swing for the fences. I collect premium on low-beta dividend payers and let the chaos play out around me.

The Three Criteria

Every stock I'm considering right now must pass three tests.

1. First, it must have beta below 1.0. I want muted moves, not amplified ones.
2. Second, it should provide short puts that pay at least 2.5% return on risk. If they won't pay me enough for my willingness to own shares, I move on.
3. Third, it must have a strong fixed charge coverage ratio. I want companies that can meet their obligations even if revenue dips.

NextEra, Procter & Gamble, Kroger, TJX, and Kinder Morgan all make the list. Each one offers different sector exposure while meeting all three criteria.

The Utility Play

Utilities deserve special attention here. When bonds sell off and yields rise, utilities can often become a substitute for fixed income. They offer steady dividends with lower volatility than the broad market.

NextEra crossed above zero on the Chaikin indicator today. It's been pushing through its moving average. The sector appears to be holding up while everything else rotates.

What I'm Not Doing

I'm not chasing the Russell rally. Low volume into record highs with borrowing costs spiking is a warning sign.

I'm also not buying high-beta tech names. The risk-reward ratio simply isn't there when the direction is unclear. I'm not assuming bonds will recover quickly. The selling is real, even if it's domestic.

Finally, I'm staying patient, collecting premium, and letting low-beta stocks do the heavy lifting.

The Bottom Line

Uncertain markets often reward patience and protection. High-beta stocks can potentially amplify every swing. Low-beta stocks can absorb the chaos while still paying dividends.

The math is simple. If the market needs to fall 4.6% for you to lose money on a 3.5% stock decline, you've built a buffer. That buffer lets you hold through the noise.

Find stocks with beta below 1.0, puts that pay at least 2.5%, and strong financials. Sell puts to lower your cost basis. Collect dividends as a bonus. Let everyone else guess which way the market breaks -- you'll be getting paid either way.

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