Scott Bauer's SPDR S&P Biotech ETF Trade

Speaking on Bloomberg Markets, Scott Bauer of Trading Advantage said that he wants to trade SPDR S&P Biotech (ETF) XBI ahead of the next presidential debate.

Implied volatility in the name is really high ahead of the event and he wants to take advantage of that. Bauer wants to sell the October 14, 64 strike put and buy the October 14, 63 strike put for a net credit of $0.35. His maximal gain for the trade is $0.35 and he is going to collect the amount if the stock stays above $64 at the October 14 expiration. Below $63.65, he starts to lose money and he can maximally lose $0.65.