Dan Deming's SPDR S&P 500 ETF Trust Trade

Dan Deming of KKM Financial spoke on Bloomberg Markets about an options strategy in SPDR S&P 500 ETF TrustSPY.

He thinks that the ETF is trading close to its resistance and he wants to use options to initiate a short position. Deming wants to buy the January 214 put and sell the January 207 put in SPDR S&P 500 ETF Trust for a total cost of $1.60. The trade breaks even at $212.40 or 2.08 percent lower and it can maximally make a profit of $5.40.