Steve Sosnick's Financial ETF Trade

Steve Sosnick of Interactive Brokers suggested on Bloomberg Markets that investors should consider a strangle options strategy in Financial Select Sector SPDR Fund (NYSE: XLF).

He wants to buy the April 24.50 call and the April 23.50 put for a total credit of $0.38. The trade breaks even at $24.88 or 6 percent higher and at $23.12 or 1.49 percent lower. He expects that the volatility is going to increase, because there are two important events until the end of the April, the French election and the Trump budget cliff.