New Trade Rec: XLE
Your Profit Takeover Trade Recommendation
On the news, Brent crude and West Texas Intermediate (WTI) were both up – a move that will help out oil names.
But instead of picking out an individual stock, why not trade the whole basket?
The Energy Select Sector SPDR Fund (NYSEARCA:XLE) is a great candidate for a bullish trade today – and that’s exactly what I’m going to give you.
Buy the XLE January 21, 2022 $59 call for about $1.70.
I drop trades just like this every single day the market’s open for my Profit Revolution members.
So if you liked this one on XLE, you’ll love what Profit Revolution has to offer.
Learn more about how you can join right here.
VIX Traffic Light – Teetering on Yellow
The VIX, however, is up three points.
And that means this market is weak.
At the end of the day yesterday, the mega-caps finally sold off… and the market took a dump.
That just goes to show that the mega-caps have been the only thing holding the market up the past few days.
And now, almost everything I’m looking at is bearish.
Last week, traders dumped energy stocks and bought up tech. But yesterday, we saw tech sell off.
Remember – money doesn’t just leave the market. It’s always moving, from sector to sector. And I think we’re going to see energy go higher again as tech goes lower.
Now, after that analysis, you’d expect my VIX light to be yellow.
And it almost is… but not quite.
I think the VIX is getting overdone. And I’m looking for it to drop later in the week.
But if we get one more big “up-day” in the VIX, then today’s red light will quickly turn yellow.
Cruddy Economy? Buy These Vice Stocks
- Exxon Mobil Corp. (NYSE:XOM)
I know I said I wasn’t going to pick out individual oil names after Biden’s announcement – hence our trade on XLE.
But if I did, XOM would be a big winner.
- Anheuser Busch Inbev (NYSE:BUD)
BUD, like gambling and tobacco names, is a vice stock. And vice stocks do well in a cruddy economy. As inflation goes up, I’d start buying up stuff that makes money when the dollar is soft. And BUD is a good name for that.
- Sabre Corp. (Nasdaq:SABR)
During this morning’s episode of Money Morning LIVE, volume trading expert and host Olivia Voz brought software company SABR on the screen. And I saw something interesting…
The stock looks like it’s dying. But its implied volatility (IV) is very high:
That means we’ve got an amazing opportunity to sell puts for good yield.
The July $7 puts will give you $0.95. That’s a 12% yield for a 7-month hold. Annualize that, and you’re looking at closer to over a 20% return.
Tomorrow, I’m hosting my last Profit Takeover live show before the Thanksgiving holiday.
Make sure you catch it to make some money before the market closes…
It’s tomorrow at 12:30 PM ET. Catch the full schedule right here.
Until then,
Mark Sebastian
Founder, Profit Takeover
Comments
3 responses to “New Trade Rec: XLE”
Leave a Reply
November 23 2021
Hey Mark, It’s always a good time to buy Bud.
Of course I Took your XLE, I think you’re on a great
Hot Streak. I’d like to make a few bucks on your
vix Just say when !
YOU MUST HHAVE SOME ROSY PUTS FROM ANOTHER PLANET. MY PUTS RISE AS STOCK FALLS. THAT .95 $7 PUT WILL BE $2 OR MORE AND DOESN’T LOOK LIKE IT WILL TAKE TIL JULY TO DO IT. OF COURSE ALL I SEE IS THE CHART.