Kevin Kelly's Technology ETF Trade

Kevin Kelly of Recon Capital Partners spoke on Bloomberg Markets about an options strategy in Technology SPDR (ETF) XLK.

He said that the implied volatility in the name is low and he wants to try a straddle strategy, to profit if the stock moves sharply in either direction. Kelly wants to buy the May 53 call and the May 53 put for a total credit of $1.80. The trade is going to make money if Technology SPDR (ETF) jumps more than 2.81 percent, above $54.80 or if it drops 3.94 percent, below $51.20.