Carter Worth spoke on CNBC's Options Action about the healthcare sector. He compared the year-to-date performance of the sector with the performance of the financial sector and he concluded that the spread between them is on its historical highs. Worth added that it usually makes sense in these situations to bet that the spread is going to reverse.
Mike Khouw thinks that it's better to trade individual stocks in the health care space than Health Care SPDR (ETF) XLV. He suggested that traders should buy the February 120/130 call spread in Celgene Corporation CELG for $2.55.
The trade breaks even at $122.55 or 5.87 percent higher from the closing price on Friday. If Celgene jumps to $130 or higher, the trade is going to reach its maximal profit of $7.45.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.