Bullish – XLU $ 57.55 – Utilities
The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.
On Friday’s Options Action, the crew analyzed the performance of the utility sector. Utilities have outperformed the S&P 500 over the past year by a wide margin and are making new highs as equity markets turn lower. Coupled with a lower interest rate environment, yields on XLU provide an attractive investment. Expecting XLU to continue higher, Michael Khouw suggests buying a May 57 Call for a $1.25 Debit. As of Friday’s close, these calls were trading at a $1.46 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: XLU Options Action Video