Mark Sebastian's Utilities SPDR (ETF) Trade

Mark Sebastian of Option Pit suggested on Bloomberg Markets that investors should consider a bearish options strategy in Utilities SPDR (ETF) XLU.

Utilities SPDR (ETF) had a sharp move higher, but it could pull back if the Fed decides to increase interest rates, thinks Sebastian. To make a bearish trade, he wants to buy the August 52 put for $0.90. The breakeven for the trade is at $51.10 or 2.74 percent lower from the current stock price.