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Go Short Technology, Get Long Las Vegas?

Technology stocks and casino companies do not have much in common. At least, that's what traders on Friday's "Options Action" figured. They made the case that big technology stocks are on their way lower, and Las Vegas Sands is set for a bullish breakout.

Let's start with the bullish call on the gaming company. Vegas might be a fun place for a weekend, but how about for an investment? Well, Oppenheimer's Carter Worth explained that going long Las Vegas Sands could wind up being pretty fun, too. Carter pointed out the importance of the $48-$50 level on Las Vegas Sands' long-term chart, and argued that the stock is headed back up to that level.

CRT Capital's Mike Khouw agreed with the bullish sentiment, so he suggested buying the October 44-call for $1.65. His trade and breakdown follow.

MIKE'S LAS VEGAS SANDS TRADE

• BUY THE OCTOBER 44-STRIKE CALL FOR $1.65

HOW MIKE'S LAS VEGAS SANDS TRADE MAKES MONEY

• PROFITS ABOVE $45.65

• LOSSES BELOW $45.65

On to the bearish trade. RiskReversal.com's Dan Nathanwas none too optimistic about the outlook for Apple stock . This past week, volatility in the stock spiked as Apple made yet another all-time high. Dan called that action "giddy," and said it makes him "a little nervous." He thinks Apple could see some downside in the near-term. So to express that bearish view, he looked to buy a put spread on the Technology ETF, the XLK -- of which Apple makes up 20 percent. Specifically, he suggested buying the September 30/29 put spread for a mere $0.20. His trade and breakdown are below.

DAN'S XLK TRADE

• BUY THE SEPTEMBER 30-STRIKE PUT FOR $0.35

• SELL THE SEPTEMBER 29-STRIKE PUT FOR $0.15

HOW DAN'S XLK TRADE MAKES MONEY

• LOSSES ABOVE $29.80

• PROFITS BETWEEN $29.80 - $29.00

• PROFITS CAPPED AT $29.00

Watch Options Actionon CNBC Fridays 5:00pm ET, Saturdays at 6a ET and on Sundays at 6a ET

Questions, comments send them to us at: optionsaction@cnbc.com

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