Missed 10-Bagger: XLU

Tim Knight did a premium post on XLU two weeks ago. The price cratered early and bounced. A relatively high price after that was $64.50, so let's go with that. It closed at $69 per share on Friday. I skipped this one because I expected areas such as tech and biotech would lead the rally and because I thought XLU might not bounce much with rates stuggling to rise. I know, however, that XLU options can be extremely profitable in surprising moves because they are priced for low volatility. I remember checking the options, but didn't think XLU would pop enough for a trade. It did. Going out a few dollars on a monthly call expiring in July (like say $68) would be be more than a 10-bagger, as would many other strikes. Point being, big money can be made when the market is "mispricing" the options becuase it doesn't appreciate the risk of it blowing up or down. Whereas stocks like GME and TSLA have huge premiums baked in, many stocks and funds the market is sleeping on can deliver huge returns if you have the timing right.