On Friday’s CNBC’s Options Action, the crew analyzed the performance of the technology sector. The technology sector has gained almost triple the performance of the S&P 500 since the 2009 bottom, and over 32% on the year. Recently technology has started to pullback roughly 5% after a long period of outperformance. Additionally, it broke above a bullish channel earlier this year and is starting to consolidate back towards the channel, roughly 3-5% lower from the current price. Expecting a retreat back lower towards $130 support area, Michael Khouw suggested buying an Sept 138/130 Put Spread for a $2.25 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