Energy Select Sector SPDR® Fund
$-0.32 (-0.44%) Today
52 Week High
52 Week Low
7 Days Mentions
Incurred net loss of 21000 in 2 years after playing options… and then with taking benefit of 2020 market dip and doing good investment, now sitting on net profit of 32000. My investment into Uber, Micron, Boeing, Carnival, XLE, Carnival, Citi, Wells Fargo and my patience paid off finally.
End of the 2nd quarter is this week. I think some funds are selling all their winners to pad their quarterly gains (loses in this case). I imagine they will start to buy back in next week. Into which stocks? I have no fricking idea. I would guess some $XLE stocks as it would be a tough sell to tell your clients you are selling Oil with gasoline prices at ATH's with Warren Buffet buying $OXY if you want people to continue to invest in your funds.
If I see something of interest, I do a percentage of my paycheck into my etrade savings, where I can quickly transfer and buy. Sometimes I'll sell something I don't plan on holding long term anyways, to reallocate into something of interest, even if it is at a loss. For example, I bought the gold ETF, IAU, due to concerns of inflation. I sold it after it dropped a little from the recent market, but at the time only dropped a small amount compared to something like VOO. I then reinvested those funds into something else that dropped significantly more but I plan on holding long term (I think it was more VOO, but might have been more SCHD). Anything I place in VOO, VT, and SCHD, I don't touch until I buy a house whenever. VTI I don't touch until I buy a new car years from now. McDonalds I may also not touch along with VOO/VT/SCHD, as it has such a great history during recessions, and I'd rather put money in that over VNQ for a real estate investment (although I may do both). Everything else I have, Amazon, Disney, XLE, NRZ, I'm dumping for something better as soon as I see a great opportunity. Hopefully I'm explaining that where it makes sense.
I happen to agree with you OP and I sold 75% of my XLE position last week. I've already seen articles over the weekend about reviving the Iran nuclear deal. If sanctions are lifted and Iran is able to sell oil into the market, you'll see major pressure on oil prices. Iran has a fuck load of oil and it seems that this administration is willing to make deals with the enemy to bring down prices before the midterms election. I believe a massive deflationary event is on the horizon that will bring down prices on everything including oil.
Ukraine into the EU is bullish for the market. They just withdrew from an eastern city they were trying to hold and are on their last legs in the final one. I have a feeling they will pull back, sue for peace, lose the eastern part of the country (which doesnt want to be part of Ukraine anyway) and the war will end. Then Ukraine will be accepted into the EU to solidify the border with Russia (which should put a stop to their expansion for now). I think that will be happening in the next few weeks. You saw the drop in oil over the past couple weeks. I think its in anticipation of this. Puts on XLE. Mid July will have some bullish as fuck news.
Demand will decrease in perpetuity. Individuals and families are being priced out. The world population is decreasing. Most XLE companies are oversold from sector rotation out of tech. Recession means less industrial activity when governments no longer print money to stimulate Industry. Globalization is winding down. XLE capitulated worse than SPX in 2008.
2021 called and said hi, the fact that "it's summer" did not mean anything for XLE last year. Structural issues will keep oil higher than what is comfortable for governments for a while, but it's more likely than not that the easy money has been made. And in my opinion, many don't want to talk about this actually. Because if oil hurting isn't EoQ BS, it's exposed that many are hiding in oil and have just gotten pounded.
IMO the XLE is overpriced and has more room to fall. It increased by 70% since war broke out, but the US was only buying 7% of our oil from Russia. I've been watching a lot of the September $48 and $55 Puts rolling in the past month so I took a short position.
Calling bottom on NattyG [https://ibb.co/rk4jXgn](https://ibb.co/rk4jXgn) ​ Almost bottom-ish on XLE [https://ibb.co/YdfqcTm](https://ibb.co/YdfqcTm) ​ ^(and soon I'll be calling bottom behind the dumpster at Wendy's)
I would say you should set a time to close the trade whether that is 10 days or 2 weeks out or a profit target whichever comes first. Sometimes you wont make it to the profit target so you have to defer to the time in the trade. For my more narrow trades I found that anything longer than 2 weeks often started to go red so I had to trust my plan and just close it and open a new trade. If your position is fully ITM and you only have a few days left - like $0.80 is the value if the spread and you opened for $0.30, then you only have $0.20 left to lose but $0.80 to gain. But you have to think about the idea that the $0.20 can still be salvaged for another trade if this one is completely wrong. Making an assumption about a trade is what happens when you open and if your assumption is wrong then you should just close the trade and move on - especially if your portfolio is would be better off without this 1 bleeding position. Another thing to think about is trading ETFs vs individual stocks so you can have more liquid products and less volatility. You can get in and out of SPY, QQQ, IWM, XLE, etc at the mid price quite often but individual stocks might require more adjustments. Not to mention that the ETFs I mentioned have $1 increments for strike prices so it will help you trade $1 wides. If you haven't done so, Chris Butler at ProjectFinance on YouTube has some great content.
I started taking energy profits a couple weeks ago. Still have most of what I started with. I’m staying diversified and I think the companies have more profits ahead so I might add if we dip more. Have some long XLE options positions I added last Friday. I’ve been buying tech regularly so it’s not a one or the other situation for me.
80% $SCHD, 15% $XLE, 5% $GLD. If you are buying individual stocks be prepared for the potential for 50% drop of any stock you buy from here. We could also get a nice rally once the S&P hits 3500 which is the 200 DMA on the 2 year charts. What am I doing? I bought last week and I will be buying this week. I added to oil stocks $KMI and $GOLD last week. I will be buying the dip on either $COP or $PSX this week. I am also looking at $PYPL, $INTC, and $T. Spread the money out.
WTI is an acronym for the type of physical commodity (west texas) /CL is the symbol for the future product of WTI. WTI is the symbol on the NYSE for a company. it is neither a future or directly related to trading of the crude oil. USO is a pretty shitty ETF related to the oil futures. XOP/XLE are 2 popular ETF based on oil companies. they have decent options liquidity. know your instrument.
XOM has along with XLE has been greatly outperforming SPY on a relative basis. The oil price pullback led to that violent snap down last week to a better value relative to s and p. I expect it to resume a move higher from this general level.
Ark it’s impossible to discuss where they were in 2020 because it’s an actively managed fund Ford at a 3pe and a dividend is interesting but longer term. Intel I just don’t like the company Target don’t like the company or the sector … trades 11x pe, still doesn’t interest me when mega cap tech is marginally higher GS I like and I wanna add. They’ve killed it this year trading guaranteed Wells Fargo j think is a bad brick and mortar bank XLE … energy still bullish
SPY (S&P 500) and QQQ (NASDAQ) mostly. You could also trade SPX if you have a bigger account, they are essentially 10x SPY so you save commissions if you would otherwise be buying more than 10 SPY contracts. You also get tax benefits such as 60% of SPX options profits being treated as long term gains regardless of how long you hold them. They are also cash settled so there is no equity maintenance if they go ITM since you can't be assigned. You could also trade the X sectors like XLF (financials), XLE (energy), etc.
doubt Time for energy to get shot big time like everything else has been. The XLE put volume is what it is for a reason, and it's because a recession is beginning to be priced in. May be some relief at times, but my guess is that CL won't go higher than $130 this year.
Sold my XLE 10 days ago at 88 and put it in ATVI. That’s looking really good now. I rarely sell, and pretty much just buy and hold but it does feel really good to make a decent move. Now watch Lina Khan shit on the ATVI merger and crater the stock price
[Closed the main XLE put debit spread short position for a little over +$251k today, a solid ~115% gain.](https://imgur.com/a/5c1eEXq) The DD for this play was that margin calls and sector rotations would cause institutional forced selling. Due to the carnage in tech, funds would have no choice but to sell the strongest sector regardless of it's relative strength. [The position was entered on 6/15, here was the trade setup for this play with three lines indicating stop loss, entry, and target for a solid 1:3 R/R.](https://imgur.com/a/ry0Zc5O) XLE is currently at -4.5 ATR, profit targets have been reached, the position is closed. Currently positioned lightly bullish with GOOGL PCS and /NQ longs.
[Highest Volume ETF options](https://www.barchart.com/options/unusual-activity/etfs?orderBy=volume&orderDir=desc) \- SPY $330p and $300p for 8/19. XLE $55p and $44p for 9/16 are notable. [Highest Volume Stock options](https://www.barchart.com/options/unusual-activity/stocks?orderBy=volume&orderDir=desc)