Bullish – XLV $91.76 – Healthcare
The S&P 500 (SPY) last week rose only 0.55% and failed to break through its key resistance level of $302. Support remains at about $294 entering a big earnings week.
XLV Trade Idea:
On CNBC’s weekly OptionsAction show Friday, Carter Worth showed that XLV is setting up to break out on the upside. XLV, which tracks 14% of the S&P 500, has been the second-worst performing sector and has been trending lower since 2015. Expecting a break higher, Michael Khouw recommended buying XLV Jan. $92 strike calls at $2.60 per share. As of Friday’s close, the calls were trading at $2.93 As a stop loss, if the XLV call premium falls to $1.30, we would suggest cutting losses on the trade.
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: XLV OptionsAction Trade
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