CNBC – ETFs

The Dow Is Just Below 50,000. How to Trade a Move Above the Key Level Using Options

The Dow Jones Industrial Average is hovering just under the 50,000 mark, a level only 2% shy of its all‑time high. A broad market rotation is shifting capital from the high‑valuation Magnificent 7 stocks toward the more diversified, lower‑priced Dow constituents. Analyst Jeff Kilburg recommends capturing the next upside leg with a call spread on the DIA ETF, buying the March 27 $495 call and selling the $500 call. The trade costs $2.50 per share, offering limited risk while betting on a continued Dow rally.