U.S. Markets open in 1 hr 13 mins
  • S&P Futures

    3,659.50
    +36.25 (+1.00%)
     
  • Dow Futures

    29,945.00
    +316.00 (+1.07%)
     
  • Nasdaq Futures

    12,392.50
    +115.50 (+0.94%)
     
  • Russell 2000 Futures

    1,845.40
    +25.30 (+1.39%)
     
  • Crude Oil

    45.10
    -0.24 (-0.53%)
     
  • Gold

    1,811.80
    +30.90 (+1.74%)
     
  • Silver

    23.52
    +0.93 (+4.13%)
     
  • EUR/USD

    1.1972
    +0.0037 (+0.3113%)
     
  • 10-Yr Bond

    0.8440
    0.0000 (0.00%)
     
  • Vix

    20.19
    -0.65 (-3.12%)
     
  • GBP/USD

    1.3328
    -0.0004 (-0.0267%)
     
  • USD/JPY

    104.3830
    +0.0590 (+0.0566%)
     
  • BTC-USD

    18,321.92
    -1,077.85 (-5.56%)
     
  • CMC Crypto 200

    361.14
    -3.45 (-0.95%)
     
  • FTSE 100

    6,384.38
    +118.19 (+1.89%)
     
  • Nikkei 225

    26,787.54
    +353.92 (+1.34%)
     

Carter Worth And Mike Khouw See Bullish Signs In Emerging Markets ETF

Craig Jones
·1 min read

On CNBC's "Options Action," Carter Worth said a weak U.S. dollar helps the emerging markets because it deflates their debt and increases commodity prices. Many of emerging market countries are dependent on foreign investments, and a weak dollar helps with that as well. Worth also noticed some bullish technical signs on the iShares MSCI Emerging Markets ETF (NYSE: EEM) chart. The stock broke above its resistance and out of a wedge pattern. Worth believes EEM is going to continue to move higher.

Mike Khouw agrees with Worth's bullish view and he wants to buy the January $49/$51 call spread for 60 cents. The trade breaks even at $49.60 or 2.6% above the current stock price. The maximal profit for the trade is $1.40. Khouw explained he picked the $51 strike for the short call because he sees a significant resistance at that price level.

Tony Zhang said he likes the trade, but he sees the stock substantially higher, and instead of the January $49/$51 call spread, he would just buy the January $49 call or he would buy the February $49/$53 call spread.

 

 

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.