Boost Diamondback Energy Yield to 23.7% with Options
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 28 2025
0mins
Source: NASDAQ.COM
Dividend Predictability: Dividend amounts for companies like Diamondback Energy, Inc. are influenced by profitability, making them unpredictable; the recent dividend yield is 2.8%.
Options Trading Insights: The stock's historical volatility and trading history can guide decisions on selling covered calls, particularly at the $145.31 strike price.
Current Market Activity: On a recent trading day, the put volume among S&P 500 components was significantly lower than call volume, indicating a preference for calls among traders.
Options Myths: The article references common myths about options, including the notion that most options expire worthless, which is addressed in the context of trading strategies.
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Analyst Views on FANG
Wall Street analysts forecast FANG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FANG is 179.35 USD with a low forecast of 150.00 USD and a high forecast of 219.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
20 Buy
1 Hold
0 Sell
Strong Buy
Current: 159.120
Low
150.00
Averages
179.35
High
219.00
Current: 159.120
Low
150.00
Averages
179.35
High
219.00
About FANG
Diamondback Energy, Inc. is an independent oil and natural gas company, focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. The Company's activities are primarily directed at the horizontal development of the Wolfcamp and Spraberry formations in the Midland Basin and the Wolfcamp and Bone Spring formations in the Delaware Basin within the Permian Basin. Its subsidiary, Viper Energy, Inc., is focused on owning and acquiring mineral interests and royalty interests in oil and natural gas properties primarily in the Permian Basin and derives royalty income and lease bonus income from such interests. The Company has approximately 859,203 net acres, which primarily consists of 742,522 net acres in the Midland Basin and 116,681 net acres in the Delaware Basin. Its subsidiaries include Diamondback E&P LLC, Rattler Midstream GP LLC, Rattler Midstream LP and QEP Resources, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Utilities Sector Lags with Atmos Energy Down 1.9% Amidst Market Trends
- Utilities Sector Performance: The utilities sector is the worst performer in afternoon trading on Thursday, up only 0.1%, with Atmos Energy and Entergy showing losses of 1.9% and 1.1%, indicating weakness in this sector.
- ETF Performance Analysis: The Utilities Select Sector SPDR ETF, which tracks utility stocks, is up 0.2% on the day and 0.98% year-to-date, while Atmos Energy is down 1.46% year-to-date, highlighting a disparity between individual stocks and the ETF.
- Energy Sector Dynamics: The energy sector also shows weakness, up 0.1%, with APA Corp and Diamondback Energy down 3.7% and 1.9%, respectively, reflecting cautious market sentiment towards energy stocks.
- ETF Comparison: In contrast to the utilities ETF, the Energy Select Sector SPDR ETF is up 0.3% on the day and 9.32% year-to-date, indicating relative strength in energy stocks despite individual poor performances like that of Diamondback Energy.
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Diamondback Energy Offers Better 2026 Investment Outlook Than Vitesse Energy
- Business Model Comparison: Vitesse Energy diversifies risk by investing in over 7,600 wells, currently offering an 11.7% dividend yield, but its shift from a non-operator model may jeopardize future earnings.
- Diamondback's Advantage: Focused on the low-cost Permian Basin, Diamondback estimates a free cash flow of $20 per share at a $60 oil price in 2025, indicating strong capital return potential.
- Risk Management Strategy: Vitesse has 60% of its 2025 oil production hedged at nearly $70, with 40% unprotected, posing a dividend risk if oil prices decline.
- Flexible Capital Return Policy: Diamondback's capital return policy is flexible, offering a base dividend and opportunistic buybacks, ensuring stable shareholder returns amid oil price fluctuations.
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