Market Overview

Mike Khouw's SPDR S&P 500 ETF Trust Trade

Share:
Related SPY
A Peek Into The Markets: US Stock Futures Signal Lower Start On Wall Street
Assessing This Week's Technical Damage To The S&P 500 Chart
The SPDR Regional Bank ETF (KRE): Do Bank Stocks Have More Downside? (Seeking Alpha)

On CNBC's "Options Action", Mike Khouw suggested that investors should consider a contrarian bet in SPDR S&P 500 ETF Trust (NYSE: SPY).

Khouw wants to buy the November 285 call for $3. The trade breaks even at $288 or approximately 3.5 percent higher. He bought these calls on Wednesday before the market closed and he thinks this is a rather inexpensive way to get a bullish position because you have to pay around 1 percent of the stock price to get long.

Posted-In: CNBC Mike Khouw Options ActionOptions Markets Media ETFs

 

Related Articles (SPY)

View Comments and Join the Discussion!

Dan Deming's Options Trade Ahead Of Netflix's Earning

Jim Cramer Shares His Thoughts On Alibaba, Caterpillar And More