Nathan thinks there could be more room on the downside for XLV, but it is limited to a drop of 3.5 percent to $66. To make a bullish bet, he wants to sell the January 66 put and buy the January 70 call for a total credit of $0.05. If the stock stays above $66 at the January expiration, he is going to collect the premium and he will have additional profit if the ETF trades above $70.
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