http://finance.yahoo.com/news/heres-why-utilities-buy-now-200208164.html Well...I wouldn't call utilities a buy right now. While fundamentals are certainly favorable, everyone already knows this and utilities have been bid up: http://finance.yahoo.com/echarts?s=XLU+Interactive#{"range":"2y","allowChartStacking":true} At 46.57 it's already a bit late to buy XLU. I should have bought at 40, or lower. Lets say I'm willing to buy at $40: Trade With XLU at 46.57 Jan '17 40/35 bull put spread for a net credit of $50 Yield = 50/450 = 11.1% in 349 days or 11.6% annualized Prob = 80% Expectation = .8(50) - .05(450) - .15(225) = 40 - 22.5 - 33.75 = -16.25 Price.............. Profit / Loss.......... ROM % 26.25................. (450.00)........... -88.90% 32.38................. (450.00)........... -88.90% 35.00................. (450.00)........... -88.90% 38.84.................. (65.90)............ -13.18% 39.50..................... 0.00................ 0.00% 40.00.................... 50.00.............. 11.10% 45.30.................... 50.00.............. 11.10% 51.76.................... 50.00.............. 11.10% 58.21.................... 50.00.............. 11.10% 11.6% annualized is a little below what I usually try to get in these trades. I would be happier with something north of 15%. The closing bid on Friday for this spread was $48. Ten year treasuries are currently yielding 2% http://www.bankrate.com/rates/interest-rates/treasury.aspx TLT is paying 2.48% VWESX pays 4.38% XLU itself pays 3.5% OptionsXpress seems to think I can get $75 for the trade which would be an annualized 18%. On Monday AM I will try some fishing to see if something closer to the $75 can actually be filled.