Duke Energy Stock (DUK) Drop – Decision Tools For A Roll-Down

The drop in Duke Energy today opens up the question of whether the stock will fall lower still and if so to what level. When it comes to handling a downturn in the stock there are 3 tools I use that help me make a decision as to what the stock might be up to.

With investors fretting about an upcoming interest rate hike, utility stocks are being hammered by investors who are bailing on them. The XLU is down today

To understand whether it is time to roll down my Duke Energy Stock naked puts from $77.50, I need to look back 6 to 12 months and get a better understanding of the stock and what is happening. Obviously investors believe interest rates are going to rise this year. Utility stocks are being hammered.

XLU ETF

The XLU ETF which is the utilities select sector fund, closed done just shy of 2% today. earlier in the day it hit $44.05 which is right at support. If the $44 support level breaks this ETF could easily continue lower, to the 52 week low of $39.52.

XLU ETF to Mar 2 2015

XLU ETF to Mar 2 2015

Duke Energy Stock

That means Duke Energy Stock will also continue to move lower. When looking at a stock and trying to decide whether it is time to adjust a position or implement a repair or a rescue, these 3 tools can be used to guide an investment decision. I have used them for years in my trading and today I had to use them with Duke Energy Stock.

The rest of this strategy article is for USA Members following the trades in Duke Energy Stock.

Duke Energy Stock (DUK) Drop – Strategy Update

FullyInformed USA Members can review the latest Duke Energy Stock strategy update directly through this link or they can sign in to the full USA members site here. Non-members can join here or read about the benefits of being a member.


Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.


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