With oil prices tumbling, energy stocks have taken a big beating and some good names are trading at prices not seen in many years. Among those, Morningstar recommends a set and even among them are two Devon (DVN) and Apache (APA) trading respectively at 60 and 64 dollars a share. There are many good fundamentals these two can brag about too including a strong balance sheet and good management. Their fair value estimates are respectively at 93 and 98. Even the most pessimistic ones about the energy sector consider this a great time for those with a long term (5 year +) horizon.
Besides that there are some good PUT writing opportunities too. Consider for example a strike 60 PUT on DVN for Jan 2016 selling at 7.55, or a 65 strike PUT on APA selling at 8.49. These are positions I find more suitable for the risk averse; the return is good if the PUT doesn't get exercised and if it indeed does, then I am buying the stocks very cheap to hold. Think of it another way: it is like buying the stock today and getting a 10%+ return in about a year.
