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

On December 11, CNBC Options Action's Dan Nathan recommended a bullish options strategy for Utilities SPDR (ETF) XLU. 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 Johnson & Johnson JNJ 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.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CNBCMediaCarter WorthDan NathanMike Khouw
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!