Could This Be The Perfect Volatility Play?
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Today was a massacre.
The Nasdaq dropped 2.5% and tech stocks got hammered 3%.
Everyone wants to know…Where can you hide?
Blake Young spotted something critical in today's action that might offer a clue.
Consumer staples are sitting at massive discounts with dividend yields that actually pay you to wait out the volatility.
We're talking 3% to 5% annual yields on stocks that have already been beaten down while tech was making new highs.
And it could be a great way to trade this volatility, if you know how to do it correctly.
Blake walked through the exact setups today:
- Coca-Cola KO trading at key support with 2.85% yield and ex-dividend date December 1st
- General Mills GIS offering 5% dividend yield with next payout January 9th
- Philip Morris PM consolidating in inverse head and shoulders pattern with 3.77% yield
- Multiple opportunities to either own the stock directly or sell puts at discount prices
The consumer staples sector offers something rare right now: downside protection through dividends plus legitimate 5% to 10% upside potential as these names fill gaps and test resistance levels.
General Mills stands out as the cleanest setup.
The stock sits at year lows after good earnings with 82% implied volatility rank.
You can sell the December 19th $47.50 put and collect 3.3% premium. If assigned, your cost basis lands at the exact yearly low. Then you collect that 5% annual dividend starting January 9th.
Blake's thesis is simple.
These stocks have already discounted down while the market was focused on AI and mega cap tech. When traders finally rotate out of cash and into stable returns, consumer staples get the bid first.
The risk management here is straightforward. Even if these names slide another few percent, they won't crater like tech stocks can. You're collecting dividends the entire time. The stability comes built in.
Video Length: 00:10:03
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