He said that XLE is up seven weeks in a row and that has only happened eight times in history of the sector. The follow through after such event is usually pretty big, said Worth. On average, after a seven week streak, the energy sector gained 2.4% in three months, 8.9% in six months and 14.7% in 12 months.
Worth expects the stock to fill the March 6 gap and move to $42. He is bullish on the stock and he wants to stay long.
Mike Khouw suggested an options strategy to make a bullish trade. He wants to sell the June $41.21 call for $1 and buy the September $38.21 call for $3.85. The total cost for the trade is $2.85 and Khouw wants the stock to stay below $41.21 at the June expiration and then jump above $41.06.