Power Plays Options
New Idea: XLE Call Spread
March 31, 2025
By Scott Redler
Energy looks like it will slowly grind higher over the next few months so I'm adding this idea to Power Plays Options:
- Long XLE June 30 $95 X $105 Call Spread
This would entail buying the XLE June 30 $95 calls, and selling an equal number of XLE June 30 $105 calls.
The spread looks good in the $3 to $3.50 area.
If XLE is at $105 or higher at expiration, it will be worth $10, so I like the risk reward.
If you want to be more aggressive, you can look at the straight $95 calls.
But I am using a spread here in Power Plays Options because the upside may be capped near $105
-Scott
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