Carter Worth of Cornerstone Macro spoke on CNBC's "Options Action" about SPDR S&P Metals & Mining ETF XME. He said industrial metals have traded significantly higher recently and he expects to see a catch-up trade in metal stocks. The U.S. Spot Raw Industrial Index has exceeded the peak from 2018 and the XME has not returned to its highs yet. He expects to see a breakout in XME.
Mike Khouw suggested a bullish options trade in the name. He wants to sell the March $33 put for 20 cents to buy the June $37 call for $2.91. The total cost for the trade is $2.71 and it breaks even at $39.71 or 8.53% above the closing price on Friday. If the ETF drops below $33, Khouw is going to have to buy the stock at $33.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.