ETF - Sector
XLF
Financial Select Sector SPDR Fund
Diversified financial sector income from XLF with covered calls and cash secured puts. Bank and insurance exposure.
Monthly Premium1.2-2.0%
Annualized Return14-24%
Stock Price$44-50
IV RankModerate (30-45)
Options LiquidityExcellent
Dividend Yield1.6%
Why XLF for Covered Calls & Cash Secured Puts?
XLF offers diversified financial sector exposure with good liquidity. Much more accessible than individual bank stocks. Interest rate play.
Example Covered Call Trade
XLFCovered Call
Strike Price$50 (5% OTM)
Expiration30 days
Premium$0.70 per share
Return If Flat1.5% ($70)
Return If Called6.3% ($300) + dividend
Keep Probability72% keep shares
Recommended Strategy for XLF
Sell calls 4-6% OTM for sector exposure. Diversified alternative to single bank stocks.
Risks to Consider
- Interest rate sensitivity
- Economic cycle exposure
- Bank crisis contagion
- Lower premium than individuals
Analyze XLF Covered Calls Now
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