Retail ETF (XRT) – Bearish Options Action Trade for Oct 1st, 2018

On Friday’s Options Action, the crew analyzed the performance of the retail sector. The S&P Retail ETF has recently reached all-time highs, however it has severly underperformed the market over the past 4 years. After forming a double top the last few weeks, it has started to pullback lower towards its bullish trendline. Expecting a move lower Michael Khouw suggests buying a Dec 51/47 Put Vertical for a $1.00 Debit. As of Friday’s close, this spread is trading at $1.12.

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: XRT Options Action

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