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Conservative option strategies, what did you buy or sell today?
Getting a little more serious about UTE plays. IMO the risk reward is there relative to this bull market for the first time in a long time for UTE options plays. My thesis isn't complicated. Rising interest rates are the current scare which is textbook UTE investing. If CD rates rise enough to truly make UTE yields look unattractive, the entire equity market is in BIG trouble soon anyway. I've been nibbling shares and selling puts on quality UTEs like DUK,AEP,XEL,WEC. They are volatile enough now that I have closed trades only 24-48HRs old for a 40% profit, then re-enter on the next dip that lately comes within days. The UTE premiums are about good as it gets short of an overall market in correction. I'll stick with quality UTEs with some renewables exposure. I've been selling puts in NEE that expire worthless, but it's in it's own growth stock stock world. I own plenty of NEE but the risk reward vs beaten down quality UTEs is not there for me, so no new money. I add to that when it goes down with tech and other growth stocks. I also own ALE which is rocketing higher. I won't get greedy and get sucked into that when there are conservative choices with better balance sheets and more upside potential IMO.

Just my two cents. Maybe interest rates do shoot higher due to excess GOV spending but I happen to believe they will manipulate them right back down to something the overall market can digest.

Messages In This Thread
T puts ? - by john - 03-17-2020, 09:33 AM
RE: T puts ? - by fenders53 - 03-17-2020, 10:32 AM
RE: WEN options update - by john - 03-23-2020, 09:53 AM
RE: WEN options update - by fenders53 - 03-23-2020, 10:40 AM
RE: Conservative option strategies, what did you buy or sell today? - by fenders53 - 01-14-2021, 12:14 PM

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