One sector could benefit from this market rotation, trader says

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One sector could benefit from this market rotation, trader says (via TradingNation)

among some of its largest components, is up nearly 8% this week. Gordon says its 200-day moving average at just over $56 is "in sight."

"I take the XLB quite positively here," said Gordon. To take advantage of a move higher with options, "maybe go out and look at the June monthlies. What I want to do is sell a put, take that premium, which is a bullish strategy, … and go up and buy a higher call. ...

Gordon is selling the 52 put with June 19 expiration for a credit of around $2.76 and buying the 57 call which costs around 62 cents.

 

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