Tony Zhang Has A Bullish ETF Options Play For The Volatile Cannabis Space

On CNBC's "Options Action," Tony Zhang spoke about a bullish options trade for the cannabis sector. It had a pretty volatile week and for investors who are looking for some of that action, Zhang sees ETFMG Alternative Harvest ETF (NYSE:MJ) as a way to get exposure.

The implied volatility in the name is very high, so Zhang wants to sell a put spread to make a bullish bet. Specifically, he wants to sell the March $25/21 put spread for a net credit of $1.85. The trade starts to lose money at $23.15, or 5.66% below the closing price on Friday. If the stock drops to $21 or lower, the trade would reach its maximal loss of $2.15.