SRE Entry

I've opened a new contract. Yesterday I mentioned my gear shifting from ETFs to holding within the sectors. From the different top holdings within XLU, I finally decided on SRE as it is just the right amount of volatility for my taste at this point in my journey.

During my analysis yesterday, I looked at the following: RSI, support and resistance for SRE, relative strength against XLU, and relative strength against SPY. These four points allowed me to monitor SRE today and wait after 10 AM to decide whether to enter or not.

SRE dropped slightly this morning, so I entered the contract with the following data points:

• Price Action: $93.11
• Contract Price per share: $2.33
• Strike price: $95
• Expiration date: April 17, 2026
• Break-Even Price: $97.38
• Ex Dividend Date: March 19, 2026 for $0.66
• Stop Loss: $1.75

From my previous experiences, I learned to automate the stop loss in case anything abrupt happens during my working hours.

Today's high was $94.22 and closed at $92.97 - closing was a bit shaky for my liking but I'm not shaking ;) Let's look at the chart for the last 14 days:

The RSI remains in a high 46 mark, which gives breathing room for an uptrend run without driving it to overbought position too abruptly. SRE remained within the defined channel today, and I believe it is in a period of stabilization before running up. I've also added the relative strength line for SPY where we see SRE is slightly underperforming by -1.32%. While this is not a drastic difference in my opinion, I am also new to using relative strength analysis so I will see how this changes day by day.

UBS has set a price target of $100 for SRE, this is higher than my strike price, which gives me confidence. Something I am keeping an eye for is ex dividend date on March 19 for $0.66 - This is something that I also didn't consider in the past, but this time I am preparing for my time window between now and March 18. Depending on how SRE performs, if it is looking good I will stick to it.

I feel neutral and optimistic about SRE. I've gone back to stocks which are more volatile, but SRE specifically is a great balanced stock in my opinion in comparison to its counterparts within XLU. Either way, I'm applying old methods with further analysis which gives me more conviction of where it's headed. In addition, the fixed stop loss limit order gives me tranquility as I will not be gambling away when unable to track charts during my busier days. Excited for what tomorrow will show.