Dan Nathan Reduces Risk On His Utilities SPDR (ETF) Trade

On December 11,

Dan Nathan

for

(NYSE:

). He bought the February 42 call for $1, which is now in the money. After the move higher, Nathan decided to sell the February 45 call to reduce his risk. He now owns the February 42/45 call spread. Mike Khouw and Carter Worth commented on their

(NYSE:

) trade. They still think that it is a good idea to own the February 105 call and they don't want to adjust the risk for the trade, although they might consider converting it into a call spread if the stock moves higher.