I expect a swing of about $4-$6 all the way up to $85+- within 2-5 months.
I am risking money in the form of a short put option to expire the 19'th of September (will be followed by a covered call opened if assigned).
My entry price is $82
This is a buy and hold trade in a lower risk lower volatility instrument, you might have to hold for 6+- months before it reaches the target, XLU rises slowly but rarely goes down 20%+ for no big reason (there has to be underlying market crash or severe macro negative events) so I don't see a lot of downside remaining, I do think it can go lower than $80 but that would then be 10% down from its peak, but at max I would place it around 15% down from its peak before it starts going up.
Also historically lower interest rates do benefit the utilities sector.
I am risking money in the form of a short put option to expire the 19'th of September (will be followed by a covered call opened if assigned).
My entry price is $82
This is a buy and hold trade in a lower risk lower volatility instrument, you might have to hold for 6+- months before it reaches the target, XLU rises slowly but rarely goes down 20%+ for no big reason (there has to be underlying market crash or severe macro negative events) so I don't see a lot of downside remaining, I do think it can go lower than $80 but that would then be 10% down from its peak, but at max I would place it around 15% down from its peak before it starts going up.
Also historically lower interest rates do benefit the utilities sector.
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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.