Dykstra: An Energy Options Play That Pays Off

With prices high and demand holding steady, now is the right time to invest in energy. With that in mind, Penn Virginia Resource Partners (PVR Quote) deserves our attention.

This company has the right mix to make money in the years to come. Until alternative energy becomes cheaper and more efficient, there will be consistent demand for coal, and 71% of Penn Virginia's income comes from managing coal properties. The remainder comes from the gathering and processing of natural gas; if natural gas takes off as a cleaner alternative to oil, look for that part of the company to prosper.

Penn Virginia provides great shareholder value in all market conditions, with a yield of 6.2%. This solid yield plays in perfectly with the deep-in-the-money strategy. It also has good financials. ...