Generating Cash Flow From The Energy Sector
Source: Unsplash
The energy sector has been far and away the best performing sector over the last year with both oil and gas prices having been on the rise. A popular way to trade the energy sector as a whole is through the Energy Select Sector SPDR ETF (XLE).
XLE has been a solid gainer for 2022, making it a good candidate for a covered call strategy. A 5,000-lot covered call traded last week which expires in June and pays nearly 2% in return on cash at risk. The trade also allows for around 10% upside in the stock price.
Check out this short video for more information.
This post originally appeared at Investors Alley.
Category: Covered Call Writing
