Mike Khouw's SPDR S&P Retail (ETF) (XRT) Trade
CNBC Options Action's Mike Khouw said on the show that the retail sector was one of the better performing sectors last year. He added that if you have a long position in this sector, you should consider hedging, because there are so many things that could increase volatility in the space.
He thinks that the best way to hedge right now is to buy put options in SPDR S&P Retail (ETF) (NYSEARCA: XRT). He would buy the March 50 put options for $1.40, and his position would be protected below $48.60.
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