<div id="readability-page-1">Money Markets Forget Money Markets, Here Is How You Can Earn Massive 11% Yield  ByTrefis Team ,  Contributor.  Forbes contributors publish independent expert analyses and insights. Building a platform to do the job of 1 million analysts for  Great Speculations Follow Author Dec 16, 2025, 01:59pm EST  UKRAINE - 2021/05/08: In this photo illustration, the BWX Technologies logo seen on a smartphone and on a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images At about $174.37 a share, BWX Technologies (BWXT) is trading roughly 19% below its 52-week high as investors digest valuation concerns after a strong run, and weigh near-term uncertainty against long-term nuclear tailwinds. That pullback puts the stock back on the radar for patient investors.  Do you think BWXT stock is a good long-term bet at current levels? What about at a 30% discount at about $125 per share? If you think that's a steal, and have some cash ready to go, here's a trade.  11% annualized yield at 30% margin of safety, by selling Put Options.  Sell a long-dated Put option expiring 11/20/2026, with a strike price of $125  Collect roughly $782 in premium per contract (each contract represents 100 shares).  That's about 6.7% annualized yield on the $12,500 you're setting aside for the possibility of buying the stock  This cash parked in a savings or money market account will earn an extra 4.0%, taking total yield to 10.7%  And you give yourself a chance to buy BWXT stock at deep discounted price of $125  However, this is not the only stock strategy in town. Trefis High Quality Portfolio is a sophisticated framework designed to reduce stock-specific risk while giving upside exposure.  Possible Trade Outcomes: You Win Either Way  1. BWXT stays above $125: You keep the full $782 premium - 6.3% extra income over the next 340 days on cash that might otherwise earn you 4.0% or less. You never buy the stock and simply walk away with the cash.  2. BWXT closes below $125: You’ll be obligated to buy 100 shares at $125. But thanks to $782 premium, your effective cost basis is just $117.18 per share - roughly 33% from the current level.  MORE FOR YOU But to hold this trade with conviction, you want to see long term upside in the stock. Because if it comes to it, you want to be excited about buying the stock cheap.  Firststrong you want fundamentals to check out. For details, see Buy or Sell BWXT Stock or check BWX Technologies Investment Highlights  Second, you want to better understand competitive advantage and industry tailwinds. Below is what specifically gives us the conviction.  Why Hold BWXT Stock Long-Term  BWXT's monopolistic position in a critical national security sector, combined with the strong secular tailwind of nuclear energy's role in global decarbonization, makes it a compelling long-term holding. The high barriers to entry and long-term government contracts provide a durable competitive advantage. The growth in the commercial nuclear sector, particularly with Small Modular Reactors (SMRs), offers significant upside potential.  Competitive Advantage  We classify BWXT’s economic moat as WIDE, with the primary source being Switching Costs  BWX Technologies holds a virtual monopoly on manufacturing naval nuclear reactor components and fuel for the U.S. Navy, with multi-billion dollar, multi-year sole-source contracts.  Long-term government contracts, some extending six to eight years, create a highly predictable and stable revenue stream, indicating a deeply entrenched relationship with its primary customer.  The highly specialized and regulated nature of nuclear reactor manufacturing for submarines and aircraft carriers creates exceptionally high barriers to entry for potential competitors.  Industry Tailwind  The industry tailwind is STRONG , with CAGR projection of 5.4% to 42.31% (Multiple sources)  Secular Trend: Decarbonization and Electrification  Key Risks: Regulatory hurdles and potential for project delays in a highly complex industry.  Financial Guardrails  Cash generation: Positive Free Cash Flow  Balance Sheet: The company has a significant net debt position, with total debt reported at $1.5 billion as of September 2025, but this is supported by strong operating cash flow and is considered manageable within the capital-intensive defense industry.  Not comfortable with options or stock-specific trades? PORTFOLIOS are even better.  Portfolios Beat Stock Picking  Individual stocks are unpredictable. A smart portfolio keeps you invested, limits downside shocks, and provides upside exposure.  The Trefis High Quality (HQ) Portfolio , with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all three - the S&amp;P 500, S&amp;P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics .  Editorial Standards Reprints &amp; Permissions LOADING VIDEO PLAYER... FORBES’ FEATURED Video</div>

BWXT

<p>The article explores investment strategies for BWX Technologies (BWXT), currently trading 19% below its 52-week high. It suggests selling long-dated put options with a strike price of $125 to earn an 11% annualized yield, combining option premiums and money market returns. BWXT's monopolistic position in naval nuclear reactor manufacturing and strong industry tailwinds in nuclear energy make it a compelling long-term investment. The Trefis High Quality Portfolio is also recommended for reducing stock-specific risk while providing upside exposure.</p>