Kevin Kelly's Technology ETF Trade

Kevin Kelly of Recon Capital Partners spoke on Bloomberg Markets about an options strategy in Technology SPDR (ETF) (NYSE: XLK).

He said that the implied volatility in the name is low and he wants to try a straddle strategy, to profit if the stock moves sharply in either direction. Kelly wants to buy the May 53 call and the May 53 put for a total credit of $1.80. The trade is going to make money if Technology SPDR (ETF) jumps more than 2.81 percent, above $54.80 or if it drops 3.94 percent, below $51.20.