Scott Nations Suggests An Options Strategy In Financial Select Sector SPDR (ETF) (XLF)

, Scott Nations talked about an options strategy in Financial Select Sector SPDR (

)

. He thinks that it is just a matter of time before the financials start to move, but he is not sure about the direction. Scott Nations wants to buy the straddle in Financial Select Sector SPDR (

) (

). Specifically, he wants to buy the July 16 call for $0.60, and the July 16 put for $0.55. This trade would cost him $1.15, and he will profit if XLF moves approximately 7% in either direction before the expiration. This trade is going to be profitable if XLF trades above $17.15, or below $14.85 on the July expiration. On Thursday, Financial Select Sector SPDR (

) (

) gained 0.56%, and it closed at $16.10.