Update on my XLE idea from earlier

2022년 5월 10일

Recently I said I am bearish on XLE and outlined many different reasons why that is. Now I have the chance to short it, and I'm risking a decent chunk on it because I have good conviction in this trade. Note that I decided against buying puts because the volatility premium is simply too high, and VIX is about to get crushed down.

2022년 5월 10일

노트

My short might not fill. let's see

2022년 5월 10일

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2022년 5월 11일

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I also noticed that for XLE, their dividends are down by a massive amount. In 2020 they were paying out 10% dividends which likely attracted this rally fueled by buy-and-hold investors who saw an ideal opportunity. But now, the dividend has fallen all the way to a meager 3%, which does not even beat inflation. This will add extra sell pressure.

2022년 5월 16일

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Update: I stopped out on the short, but I bought puts expiring in 60 days at a strike price of $78

I'm still bearish, even more so.