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Carter Worth of Cornerstone Macro spoke on CNBC's "Options Action" about Utilities Select Sector SPDR Fund (NYSE:XLU). He analyzed the return of the S&P 500 index versus the S&P 500 total return in the last 10 years, and he concluded the total return was 263% versus the index return of 194%. In the last 30 years, the difference was even higher. The total return was 2,022%, while the index return was 1,043%.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
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The analysis suggests the yield is half of the total return so Worth decided to take a closer look at XLU, which has a yield of 3.42% versus the S&P 500's yield of 1.56%. He also thinks XLU is showing signs of bottoming, and he noticed a wedge pattern that should be resolved to the upside, in his opinion.
Options don't pay dividends, but there are effective ways to collect yield on them, said Mike Khouw. A calendar trade is one of them. He suggested traders should sell the February $63 call for $1.25 and buy the June $63 call for $$2.75. The total cost for the trade would be $1.50. Khouw explained the shorter-dated options are going to decay more rapidly than the longer-dated options, which allows him to generate a yield of $1.20 over the course of a month or so.