Mark Sebastian of Option Pit suggested on Bloomberg Markets that investors should consider a bearish options strategy in Utilities SPDR (ETF) XLU.
Utilities SPDR (ETF) had a sharp move higher, but it could pull back if the Fed decides to increase interest rates, thinks Sebastian. To make a bearish trade, he wants to buy the August 52 put for $0.90. The breakeven for the trade is at $51.10 or 2.74 percent lower from the current stock price.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
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!
Already a member?Sign in