A CNBC Pro contributor argues that investors are rotating into defensive sectors like utilities and consumer staples, but utilities have become tied to AI-driven power demand and may not be as safe as they appear. The author says heavily indebted AI infrastructure providers such as CoreWeave (CRWV) and Iren (IREN) carry greater risk, while consumer staples, tracked by XLP and led by Walmart (WMT), Costco (COST) and Procter & Gamble (PG), generate steady cash flow and offer a dividend yield of about 2.6%. The piece outlines a bullish call diagonal spread on XLP, buying in-the-money January 2027 $85 calls and selling November $92 calls, with maximum risk capped at the net debit paid and a 92–95 target. The content is presented for informational purposes only and is not investment advice.
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