Generating Cash Flow From The Energy Sector

| May 5, 2022

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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.

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Category: Covered Call Writing

About the Author ()

Adrian Collins works as an Outreach Manager at Option Dash. Option Dash is always looking forward to offering the best covered call and cash secured put screener on the internet. Adrian is passionate about spreading knowledge on stock and options trading for the rising investors.