According to the trader, there are two ways to run the Energy Space when Oil exceeds $ 68

The West Texas Intermediate gained another 1% on Wednesday, hovering above $ 68 a barrel after OPEC + doubled its decision to ease supply restrictions by July, on-demand.

As WTI crude traded at its highest level since October 2018, energy stocks rallied with it. XLE Energy ETF added nearly 2%, pushing its two-day rally closer to a 6% increase.

Todd Gordon, a founder of, said recent gains have prompted energy stocks to break a stubborn portion of the rankings.

“You can see we’re on the shelf of this old support by 2019. We broke down in 2020 and at the start of the cove, we’ve been back, we’ve been testing here many times again,” Gordon told CNBC’s “Business Country” Wednesday. “We are trying to raise that resistance here to about $ 55. So it looks like we can punch there. ”

For the first time since February 2020, the XLE ETF closed above $ 55.23 above $ 55.23.

“The reopening seems to be here, the Govt cases are hitting new lows every month, the summer driving season is here, I think there is a lot of demand as the economy reopens, and we continue to see reopening of products such as energy, commodities, industries,” Gordon said.

XLE Energy ETF is the best performing S&P 500 sector this year, up more than 45%. S&P, by comparison, is up 12%.

Gordon There is two ways for an investor to emerge more upside down – buying XLE ETFs or using options.

“If you want to buy XLE, it’s fine here. I think you can put a stop loss below Loss 50. We trade $ 55, so there is a risk 5 risk, ”he said.

For investors who want to use the options, Gordon said they can buy 55 calls and sell 60 calls with the July 16 deadline.

This is a “$ 5 spread, for which you pay 43 1.43. Take Trade 5 and deduct the premium paid 50 leaving 50 to 3.50 on the potential profit in this trade, ”he said.

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