Market Overview

Joe Tigay's Financial Select Sector SPDR Fund Trade


Joe Tigay of Equity Armor Investments spoke on Bloomberg Markets about his options trading idea in Financial Select Sector SPDR Fund (NYSE: XLF).

He said the ETF rallied after the election on expectations of less regulations and lower tax rate, but now it seems that there are some political fights that are not involving any of the bills that the market had expected. He thinks we could see a potential pull back or a period of sideways trading in Financial Select Sector SPDR Fund and he wants to sell a call spread in the name to profit on such development.

Tigay wants to sell the March 23 call and buy the March 24 call for a total credit of $0.50. If the stock stays below $23 at the March expiration, he is going to collect $0.50. Above $23.50, the trade starts to lose money and it can maximally lose $0.50.

Posted-In: Bloomberg Markets Joe TigaySector ETFs Options Markets Media ETFs


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