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Todd Horwitz's Energy ETF Trade

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Speaking on Bloomberg Markets, Todd Horwitz of Bubba Trading suggested an options trading strategy in Energy Select Sector SPDR (ETF) (NYSE: XLE).

He thinks the OPEC deal is not going to hold and he wants to buy a put diagonal spread to make a bearish bet.

Horwitz wants to buy the December 16th, 74 strike put and sell the December 2nd, 73 put for a total risk of $0.86. If Energy Select Sector SPDR (ETF) stays above $73 at the Friday expiration, he is going to have a long position in the December 16, 74 strike put at a lower price.

Posted-In: Bloomberg Markets Todd HorwitzOptions Markets Media

 

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