Jeff Bishop of TopStockPicks.com said he does not expect a Santa Claus rally in tech stocks this year, and with no toys under the tree, he is shorting the Technology Select Sector SPDR (XLK) looking to take advantage of some sharp spikes down through the holidays. Bishop said he thinks that money is coming off the table in the big technology names, and while he is not sure which sector that cash is going to, he believes the volatility seen in tech stocks will continue. He is making a three-step trade in the XLK, having purchased $62 January put options on Tuesday, and planning to add to the position as XLK goes to $63 or $63.50 with a final purchase at $64; he would stop out if XLK reaches $65, but he believes the XLK will fall below $60 before the end of the year.
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 Dec. 5, he had purchased some XLK put options and was planning to complete a possible three-step purchase of call options as described in the 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.