Mike Khouw's XLK Trade

On CNBC's "Options Action," Mike Khouw suggested a bullish options trade in Technology Select Sector SPDR Fund XLK. He thinks the stock is going to trade higher because it didn't trade sharply lower on the trade news that definitely was not positive.

Khouw wants to buy the January $88 call for $1.65. The trade breaks even at $89.65 at the January expiration, which is 2.22% above the current stock price.