SSE has been a core part of my share portfolio.
It currently yields over 5% and on yield consideration would justify an sp of 1400 or higher.
However, it has had a good run lately and the graph and technicals indiate that a retracement can be expected shortly .

.

I have no crystal ball to predict the nadir but can visualise various scenarios.
The share price could move substantially by company-specific news or by macro-economic news.
On yield considerations it is still worth buying at the present price but I am waiting for a fall-back before adding to my already substantial holding (holding 26K shares).

There is a possibility of take-over approach which could drive the sp to 1500 if it happened.
Macro: BOE interest rate rise and withdrawal of QE could knock shares in general.

While holding shares I am also playing this via options. In the last few days I sold June 1250 strike put options for a small premium gain of 11 per share. That is a long position which means that I have confidence that it will not drop below 1250 before June option expiry or is worth buying at 1250 in June and collecting the juicy dividend(ex divi in august).

My expectation of retracement seems to be met by todays price fall but there may be further short-term weakness after the sharp run-up.
Hence I held back excepting my sale of
2 lots of jun 1250 put options @ 15 which corresponds to a net buying-in price of 1235 when including the option premium . I will probably add to that if the sp falls below 1300 in coming days . The graph and technicals still indicate scope for further retracement and tests of support levels .

.

MNAMREH: I am expecting further price weakness but not as heavy as to take it back to 1200 . My focus is on the price level in mid-june at june option expiry.
Most of my shares were bought @ around 1100 and have seen good gains. I don't expect to be able to buy any more at those price levels .
Buying via options @ 1250 in june and collecting the divi soon thereafter seems the next best thing. It requires patience to make the right move at the right time .

.

Mn: Indeed. Anybody hoping for a quick or big capital gain from SSE will have been disapointed in recent years .

However, I value this company for its defensive qualities, producing a steady income which I manage to enhance by associated option trades with total return above 10%.
Capital gains if and when they are achieved are an additional bonus

.

Mn: I don't give much credence to analysts and their forecasts.

I don't expect SSE to drop as low as 1225 before mid-June. If it did , I may feel tempted to top up. I think the sp may firm as the ex-divi date and next juicy divi approach . The latest share price moves indicate that it does not give up ground easily.

.

I had another close look at the graph and technical indicators.
It appears the steep rise since mid-march has come to an end short-term and as I said in my header it looks as though we are in for a retracement.

No re-tracement as yet in sight but the steep rise has to come to an end some time.
I suppose the prospect of the juicy divi will keep a strong support in place . I don't expect it to drop back below 1250 before August .

.

Even after the steep recent price falls (following Red Ed's intervention)
the 2011 price levels mentioned above on this thread look attractive.
Long-term investors have had a good run with SSE when taking the good dividend into account.
At what price will SSE stabilise short-term ?
I hope above 1400 since I have share and option exposure to SSE .