Energy Sector (XLE) – Energy Breaks Higher – July 15th, 2019

On Friday’s Options Action, the crew analyzed the performance of the energy sector. Having underperformed for the past year, energy has come back to life this past month. Coupled with an inverted head & shoulders and Hurricane Barry potentially disrupting oil supplies, suggests a possible break higher. Expecting XLE to trade higher, Michael Khouw suggests buying a Dec 65 Call for $2.75 Debit. As of Friday’s close, these calls were trading at a $2.84 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: XLE Options Action Trade