CNBC’s Options Action Trade for August 7th, 2017 – SPDR Select Financial ETF (XLF)
On Friday’s CNBC’s Options Action, the crew analyzed the performance of the financial sector. Financials is the 2nd worst performing sector this year, but has reversed recently and had a very strong week. Despite yields moving lower this past month, financials has found support and continued to outperform 10 yr yields. Additionally, after printing an inverted head & shoulders and a bullish triangle breakout, suggests a continuation higher. Expecting a breakout higher, Michael Khouw suggested buying an Oct 25 Call for a $0.90 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: CNBC Options Action