Update on my XLE idea from earlier
Recently I said I am bearish on XLE and outlined many different reasons why that is. Now I have the chance to short it, and I'm risking a decent chunk on it because I have good conviction in this trade. Note that I decided against buying puts because the volatility premium is simply too high, and VIX is about to get crushed down.
Nota
My short might not fill. let's seeNota
Nota
I also noticed that for XLE, their dividends are down by a massive amount. In 2020 they were paying out 10% dividends which likely attracted this rally fueled by buy-and-hold investors who saw an ideal opportunity. But now, the dividend has fallen all the way to a meager 3%, which does not even beat inflation. This will add extra sell pressure.Nota
Update: I stopped out on the short, but I bought puts expiring in 60 days at a strike price of $78I'm still bearish, even more so.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.