SPDR Financials ETF (XLF) – Bearish Options Action Trade for Jan 14th, 2019
The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.
On Friday’s Options Action, the crew analyzed the performance of the financial sector. XLF has outperformed the market after the 2016 election, however, has underperformed during all of 2018. Coupled with declining trading revenue puts downward pressure on financials going into earnings. Expecting XLF to move lower, Michael Khouw suggests buying a March 24/22 Put Vertical for a $0.45 Debit. As of Friday’s close, these call vertical were trading at a $0.42 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: XLF Options Action Video
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