FYI: The case for health care is simple. It is an all-weather sector that somehow manages to avoid almost all of the threats that are currently ravaging the broader stock market.
An investor seeking to take advantage of the upside potential in health care can do so with a so-called long call spread in the Health Care Select Sector SPDR exchange-traded fund (ticker: XLV). With the ETF recently trading at $93.75, an investor can buy the Jan. 18 $94 call for $2.01 and sell the Jan. 18 $96 call for $1.10, for a net outlay of $91 cents.
This trade will make money if the SPDR ETF is above $96.91 at the January expiration. The position has a maximum gain of $1.09 and a maximum loss of the net purchase price of $0.91, should the ETF find itself below $94 at expiration.
Regards,
Ted
https://www.barrons.com/articles/the-case-for-health-care-and-how-to-play-it-1543612086M* Snapshot XLV:
https://www.morningstar.com/etfs/ARCX/XLV/quote.html
