Low Beta Stocks of the S&P 500By Stock Options Channel Staff
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#15. ED — Beta: 0.4982
Low Beta S&P 500 Stocks #15: ED — Consolidated Edison IncWith a beta of 0.4982, ED currently sorts to the #15 spot among components of the S&P 500 when screening for low beta stocks, and additionally is an optionable stock (puts and calls can be traded). Pull up a full ED options chain, or explore these highlighted options contracts below: Our YieldBoost Rank identified these particular ED options as interesting ones to study:
January 2024 $80.00 Strike PUT
2.84% Annualized YieldBoost
January 2024 $97.50 Strike CALL
7.59% Annualized YieldBoost
Open ED Options Chain (in a new window) »
"Beta" is a measurement of how much a given stock tends to move with the overall market. A beta value of exactly 1 would mean that the given stock moves exactly with the market (i.e. if the overall market goes up, so does the given stock tend to go up as well by the same percentage; while if the overall market goes down, so does the stock tend to go down). It is useful for investors to consider how some stocks have tended to move with the market but in a more exaggerated fashion (these would be high beta stocks, where the beta value would be greater than 1), while on the other hand some stocks have tended to move much more independently of the overall market, marching more to the beat of their own drum by comparison to the overall market (these would be low beta stocks). On this page, we're zeroing in on low beta stocks within the S&P 500, and presenting the top 15.
Since 2003, our company has operated the stock picking discussion community ValueForumTM, where members gather each year for an event we call InvestFestTM. Both online and at these events, stock options are consistently a topic of interest. The two most consistently discussed strategies are: (1) Selling covered calls for extra income, and (2) Selling puts for extra income.
The Stock Options Channel website, and our proprietary YieldBoost formula, was designed with these two strategies in mind. Each week we put out a free newsletter sharing the results of our YieldBoost rankings, and throughout each day we share even more detailed reports to subscribers to our premium service.
On the CALLS side of the options chain, the YieldBoost formula looks for the highest premiums a call seller can receive (expressed in terms of the extra yield against the current share price — the boost — delivered by the option premium), with strikes that are out-of-the-money with low odds of the stock being called away.
On the PUTS side of the options chain, the YieldBoost formula considers that the option seller makes a commitment to put up a certain amount of cash to buy the stock at a given strike, and looks for the highest premiums a put seller can receive (expressed in terms of the extra yield against the cash commitment — the boost — delivered by the option premium), with strikes that are out-of-the-money with low odds of the stock being put to the option seller.
The results of these rankings are meant to express the top most ''interesting'' options identified by the formula, which are meant as a research tool for users to generate ideas that merit further research.
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