Dan Deming of KKM Financial spoke on Bloomberg Markets about the technology sector and he suggested a bullish options strategy in Technology SPDR (ETF) XLK to exploit a potential move higher in the space.
He wants to buy the October 21, 48 call and sell the October 21st, 49 call for $0.33. The trade breaks even at $48.33 or 1.45 percent higher from the current stock price. It can maximally make $0.67, if the stock jumps 2.85 percent to $49.
Deming explained that Technology SPDR (ETF) has exposure to Microsoft Corporation MSFT and also to the semiconductor space and he believes that they are going to lead the ETF higher.
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