OptionsPlay’s bullish trade for Wednesday, April 1st is Healthcare ETF (XLV). XLV has remained one of the strongest sectors during the decline and continues to show strength on the subsequent rally. $90 remains a major resistance on XLV, but a break above should see gains towards $100.
As a stop loss, if XLV were to trade below $84 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade. We also recommend cutting losses on this options trade if the value of the vertical spread rallied above $5.00.