Are you looking for a place to park your parents’ retirement money while earning a dividend? The XLU (SPDR Utilities) has pulled back since it made its all time high in November, but no damage has been done on the monthly and we are well within the visual channel. Using a one-off A and a confirmed reaction at P we can clearly see where this is headed. While you are waiting for the D target why not earn a 3.43% yield? This is a multi-year play so set your trading parameters and expectations accordingly. [Tout prepared by David Isham]
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Thks Rick for the XLU monthly chart.
Would you know if owning Call Options on XLU is affected by those dividends?
I own XLU March monthlys and after you posted about the dividends I became concerned I might have to pay those????
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Options are always priced to reflect dividends. You pay only if you are short the stock/ETF. RA