Energy stocks began falling a year ago but since the start of 2015 the ETF tracking the sector (trading under the symbol XLE) has been fairly range bound. And one trader presents a way to profit if the sector continues to stay within that tight range.
Since November, the XLE has been in a range mostly between $72 and $82. In fact, it opened on Friday nearly in the middle of that, at $77.38.
"It's pretty simple: We get to $72, we find buyers and when we get to $82, we find sellers," explained Andrew Keene, founder of Keene on the Market.
He expects the XLE will remain in that range at least until the end of the year. Though going long shares of the ETF may not see much return if it remains range bound, Keene is looking at a complex options strategy to take in income from the range.