Macro Risk Advisors' SPDR EURO STOXX 50 ETF Trade

Pravit Chintawongvanich of Macro Risk Advisors suggested on Bloomberg Markets that investors should consider a bullish options strategy in SPDR EURO STOXX 50 ETF FEZ.

He said the European economic data has taken a sharp turn upwards in the last quarter of the last year and the European equity market traded higher as a result. He added that the European market is pricing too much risk into the French election. If Marine Le Pen loses, the European stocks are going to trade higher, thinks Chintawongvanich.

To make a bullish bet he wants to buy the May 37 call in SPDR EURO STOXX 50 ETF for $1. The trade breaks even at $38 or approximately 4 percent above the closing price on Tuesday. Chintawongvanich explained that this strategy allows him to participate in a potential upside. In case Le Pen wins, he can maximally lose $1.