On CNBC's Options Action, Dan Nathan suggested a bullish options strategy in Utilities SPDR (ETF) XLU.
He showed a 10-year chart of the stock and explained that it has been trading in an uptrend for a long time. It is now resting at its trendline and Nathan expects that it could move higher. He wants to buy the October 42 call for $0.60 and sell the October 44 call for $0.10. The call spread would cost him $0.50 and if the stock trades to $44 his maximal profit is going to be $1.50. The breakeven for this trade is at $42.50.
© 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.