Dan Deming's Energy ETF Trade

Speaking on Bloomberg Markets, Dan Deming of KKM Financial suggested that traders should consider a bearish options trade in Energy Select Sector SPDR (ETF) XLE.

The stock has been performing poorly recently and Deming thinks that there is more room on the downside. He added that the stock didn't follow the move higher in crude oil on Thursday. Deming wants to buy the September 64/60 put spread for $1.25. The trade breaks even at $62.75 or 2.12 percent lower from the current stock price and it can maximally make a profit of $2.75.