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S&P 500 Utilities Sector SPDR (XLU) Trading Near $53.78 Support Level

Jun 19, 2017 (Marketintelligencecenter.com via COMTEX) --

The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center are highlighting two trades on S&P 500 Utilities Sector SPDR (<a href="http://www.marketintelligencecenter.com/symbol/XLU">XLU</a>) today after it closed at $54.10 on Jun 16, 2017. For more conservative investors, look at a covered call using the Sep 15, 2017 $54 call for a net debit of about $52.81. This trade will return 2.25% (9.33% annualized, for comparison purposes only) as long as the stock closes above $54 at expiration. S&P 500 Utilities Sector SPDRAcan fall 2.39% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 19, 2018 $50 call taking the place of the long stock position and the same short position in the Sep 15, 2017 $54 call. This trade only costs about $3.39 to get into and the rate of return increases to 17.64% (9.33% annualized, for comparison purposes only) but the downside protection falls to 1.31%.

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