Stock Option Trading News

Surviving the Storm with Energy Sector ETFs

We did a little number crunching on today’s market results and found the following: Only 8% of all exchange traded funds made gains today, while 41% of energy sector exchange traded funds made gains in trading.

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Below is a table showing the data on a wide range of energy sector ETFs. Not all of these ETFs are optionable, but it shows the energy sector with 41% advancing on a day when the NYSE saw only 29% of its stocks gaining ground.

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Symbol
IXC 143.96 0.72
IYE 136.21 0.11
IGE 133.91 -0.41
XLE 78 0.2
VDE 113.48 0.34
ENY 26.67 0.22
DKA 36.45 -0.03
BSR 35.32 -0.16
IEZ 66.28 -0.88
IEO 64.59 0.24
NLR 41.5 -0.88
XES 41.15 -0.59
XOP 51.29 -0.01
OIH 200.15 -0.96
GRN 27.16 -0.37
QCLN 25.96 0.07
EVX 55.05 -0.3
PZD 32.62 -0.11
PBD 29.03 -0.11
PBW 23.6 -0.07
PUW 30.39 -0.01
GEX 49.84 -0.71
RYE 67.87 0.12
PRFE 75.86 0.34
FXN 22.89 0.02
PXE 24.38 0.03
PXI 35.86 -0.06
DIG 120.1 0.32
DUG 37.54 -0.12
% Gainers . 41%
(For more details click the ticker symbol above)

Rationale for Energy Sector Gains:
Oil, it should come as no surprise, is now trading at around $88 per barrel. This price is not yet to historic inflation adjusted highs. To reach the equivalent of what we were paying in 1980 for a gallon of gas, prices would have to drift up to between $95 and $102 per barrel. Many analysts and economists consider this to be more or less an eventuality.

The transportation sector, largely seen as the great prognosticator of DOW growth, is off a little and may indicate a wider cooling in the general market. The energy sector, although somewhat affected by the market as a whole, may see gains.

If you agree with this sentiment and want a way to diversify risk, energy sector ETFs might be a way to do it. Also many ETFs offer options, so investors can take advantage of their speculation using the covered call investment strategy.

Potential Covered Calls on Energy Sector ETFs:
Below is a quick search done using the powerful tools found exclusively at www.poweropt.com. This entire process of researching covered call options on energy sector ETFs was a snap using the PowerOptions custom portfolios and the SmartSearchXL search engine.

Power Options Covered Call Search Data – ETFs
Symbol Stock
Price
Option Option
Details
Opt.
Bid
Net
Debit
%
Dnsd
Prot
%
if
Unch
%
if
Asgnd
XLE 78.00 (+0.20) XTGLC 07 DEC 81.0 (67) 2.58 75.42 3.3 3.4 7.4
PBW 23.60 (-0.07) PBWLX 07 DEC 24.0 (67) 1.2 22.4 5.1 5.4 7.1
XLE 78.00 (+0.20) XTGLB 07 DEC 80.0 (67) 3 75 3.8 4 6.7
XLE 78.00 (+0.20) XTGLA 07 DEC 79.0 (67) 3.5 74.5 4.5 4.7 6
XLE 78.00 (+0.20) XTGLZ 07 DEC 78.0 (67) 4 74 5.1 5.4 5.4
PBW 23.60 (-0.07) PBWLW 07 DEC 23.0 (67) 1.75 21.85 7.4 5.3 5.3
PBW 23.60 (-0.07) PBWKX 07 NOV 24.0 (32) 0.75 22.85 3.2 3.3 5
XLE 78.00 (+0.20) XTGLY 07 DEC 77.0 (67) 4.6 73.4 5.9 4.9 4.9
XLE 78.00 (+0.20) XBTLX 07 DEC 76.0 (67) 5.2 72.8 6.7 4.4 4.4
OIH 200.15 (-0.96) ODLKT 07 NOV 200.0 (32) 8 192.15 4 4.1 4.1
XLE 78.00 (+0.20) XBTLW 07 DEC 75.0 (67) 5.85 72.15 7.5 4 4
FXN 22.89 (+0.02) FXNLW 07 DEC 23.0 (67) 0.75 22.14 3.3 3.4 3.9
XLE 78.00 (+0.20) XBTLV 07 DEC 74.0 (67) 6.55 71.45 8.4 3.6 3.6
XLE 78.00 (+0.20) XTGKZ 07 NOV 78.0 (32) 2.7 75.3 3.5 3.6 3.6
PBW 23.60 (-0.07) PBWLV 07 DEC 22.0 (67) 2.35 21.25 10 3.5 3.5
XLE 78.00 (+0.20) XBTLU 07 DEC 73.0 (67) 7.3 70.7 9.4 3.3 3.3
PBW 23.60 (-0.07) PBWKW 07 NOV 23.0 (32) 1.3 22.3 5.5 3.1 3.1
OIH 200.15 (-0.96) ODLKS 07 NOV 195.0 (32) 10.95 189.2 5.5 3.1 3.1
(For more details click the ticker symbol above)

For more information about how to identify and research great option trades, visit the PowerOptions website. There you will find the data you need to make quick, clear, and informed decisions. You can trade knowing you have found the best investment. Also, PowerOptions will allow you, with a few quick clicks, to quickly and accurately compare trades. PowerOptions‘ premium customer support is second to none in the industry. They can be easily contacted when you need them at their toll-free number to answer customer questions. Call them now toll free at 877-992-7971.

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[tags] covered call investment strategy, covered call options, investment strategy, poweroptions, trading etf’s, exchange traded funds [/tags]

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