Kevin Kelly's Technology Select Sector SPDR Fund Trade

Kevin Kelly of Recon Capital Partners suggested on "Bloomberg Markets" an options strategy in Technology Select Sector SPDR Fund XLK.

He thinks the stock is going to either break out to the upside or to the downside, and he wants to buy a call and a put to profit if it moves sharply in either direction. Specifically, he wants to buy the July 56 put and the July 57 call for a total cost of $1.54. The trade is going to make money if Technology Select Sector SPDR Fund drops more than 3.81 percent or if it jumps more than 3.39 percent at the July expiration.