Mike Khouw's Energy Select Sector SPDR (ETF) Trade

CNBC Options Action's, Mike Khouw spoke on the show about a possible short squeeze in Energy Select Sector SPDR (ETF) XLE. He said that the ETF crossed 100 day moving average on Friday and named a declining rig counts as one of the most interesting things in the space. Khouw compared current short interest with its 2008 levels and concluded that it is elevated and that we are starting to see levels that we haven't seen since 2008. Options price is still high, despite the recent pull back, which means that there is still some concern, said Khouw. Khouw wants to make a bullish bet in Energy Select Sector SPDR (ETF) by buying the June 82 calls for $4. He is risking around 5 percent of the underlying and the break even is set at $86.