ETF - Sector
XLK
Technology Select Sector SPDR Fund
Tech sector exposure with XLK covered calls and cash secured puts. Mega-cap tech concentration.
Monthly Premium1.0-1.8%
Annualized Return12-22%
Stock Price$210-235
IV RankLow-Moderate (25-40)
Options LiquidityExcellent
Dividend Yield0.6%
Why XLK for Covered Calls & Cash Secured Puts?
XLK provides mega-cap tech exposure (AAPL, MSFT, NVDA). More diversified than individual stocks. Good tech allocation option.
Example Covered Call Trade
XLKCovered Call
Strike Price$235 (4% OTM)
Expiration30 days
Premium$3.00 per share
Return If Flat1.3% ($300)
Return If Called5.3% ($1,200)
Keep Probability73% keep shares
Recommended Strategy for XLK
Sell calls 3-5% OTM for conservative tech income. Alternative to individual tech stocks.
Risks to Consider
- Mega-cap concentration
- Higher correlation to QQQ
- Tech sector volatility
- Lower premium than individuals
Analyze XLK Covered Calls Now
Use our free calculator to find the optimal strike price for your goals
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