The amount of money pouring into utilities is no joke. In a world of slow growth, low interest rates, and trade uncertainty... utilities are a no-brainer with stable earnings and dividends. But like anything that can seem like a no-brainer, over-crowed pilling occurs and price extension of the underlying can cause unrealistic valuation to long term perspectives. If you believe interest rates could rebound from historical lows than rotational selling of utility stocks could occur as portfolio managers reduce their exposure and lock in profits.
XLU has good option liquidity and I recommend call credit spreads and debit put spreads into Oct/Nov.
XLU has good option liquidity and I recommend call credit spreads and debit put spreads into Oct/Nov.
Note
Short term - We could rise here.Note
This one is fun to hit the play button .
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.