Trade of the Day: SPDR KBW Regional Banking (ETF) (NYSEARCA:KRE)

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I believe that the banking sector is in better shape than we think. True, no bills are being passed, but the regulatory environment is much improved. Even though Dodd-Frank is probably still going to be there, the person that would enforce it — President Trump — is much looser and will not enforce a lot of its provisions.

Regional banks have many more problems with regulations than larger banks do, so loosening them is even more helpful for them. That’s the reasoning behind my bullish position on SPDR KBW Regional Banking (ETF) (NYSEARCA:KRE) — a naked put write:

Sell to open the KRE June 23rd $50 put at about $0.35 or $0.40.

Note: There are several June expirations available for KRE options. Be sure you are opening the weekly options that expire on Friday, June 23, 2017.

KRE shares are currently at about $52, and ideally it will remain above $50 through June 23. If not, you’ll need to exit your position to avoid being “put” the shares. But if all goes as planned, you can simply hold through expiration and keep 100% of the upfront put premium you receive today.

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Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990. Click here for more information on Maximum Options – and a 75% savings!


Article printed from InvestorPlace Media, https://investorplace.com/2017/06/trade-day-spdr-kbw-regional-banking-etf-nysearca-kre/.

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