$Utilities Select Sector SPDR Fund (XLU.US)$ The utilities s...
$Utilities Select Sector SPDR Fund (XLU.US)$ The utilities sector is the best performing sector among the top 11 sectors in the S&P 500 this year.
The global growth outlook, geopolitical tensions, and uncertainty surrounding the U.S. presidential election are reasons why defensive utility sector is expected to outperform the large cap.
At the same time, as interest rates further decline, utility stocks will become even more attractive because they provide stable dividends.
Therefore, we choose the Utilities Select Sector Index ETF (XLU.US) to build a bull market spread strategy.
The global growth outlook, geopolitical tensions, and uncertainty surrounding the U.S. presidential election are reasons why defensive utility sector is expected to outperform the large cap.
At the same time, as interest rates further decline, utility stocks will become even more attractive because they provide stable dividends.
Therefore, we choose the Utilities Select Sector Index ETF (XLU.US) to build a bull market spread strategy.
Trading strategy - XLU (Utilities Select Sector Index ETF), bullish call spread combination
Buy the Call option for October 18th with a strike price of $76, paying a premium of $2.28;
Sell the Call option for October 18th with a strike price of $79, receiving a premium of $0.74;
Maximum profit: $146;
Maximum loss: $154;
Profit range: Stock price higher than $77.54
Sell the Call option for October 18th with a strike price of $79, receiving a premium of $0.74;
Maximum profit: $146;
Maximum loss: $154;
Profit range: Stock price higher than $77.54
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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