The Health Care Select Sector SPDR (XLV) has been trending up this year, but has recently pulled back to about the $80 range and appears due for a year-end rally, according to Jeff Bishop of TopStockPicks.com. Bishop said the current pull-back creates a runway for investors, because he expects XLV to make a new high in the $85 to $86 range before the end of the year. In this interview for the Raging Bull podcast, Bishop said that he plans to buy shares in the ETF for his longer-term personal account as long as XLV stays above $78, but mostly he is expecting to buy December call options on the XLV — with expiration dates four to six weeks out — playing the health-care sector as a swing trade.
Jeff Bishop is lead trader at TopStockPicks.com, running short-term trading strategies primarily using ETFs and stock options. At the time this conversation was taped on Nov. 7, he had no shares, options or open orders on the XLV but he was looking at both shares and options for swing trades as described in this interview. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.