Steve Sosnick's Bearish Kraft Trade

Steve Sosnick of Interactive Brokers suggested on Bloomberg Markets a bearish options strategy in Kraft Heinz Co KHC. He thinks it works well both as a hedge and a speculation.

The stock has been underperforming the market in the last two years and Sosnick wants to buy the October 55 puts for $1.20 to make a bearish trade. The trade breaks even at $53.80 or 5.28 percent below the current stock price.