Dan Nathan's Consumer Staples Select Sect. SPDR (ETF) Trade

Dan Nathan recommended on the show a bearish options strategy in

. He believes that the ETF is too expensive and he wants to use options to make a bearish bet because he believes that the implied volatility is at reasonable levels. Nathan wants to buy the March 50/45 put spread for $0.80, which is his maximal risk. The break even for the strategy is at $49.20 and he can maximally make $4.20 if the stock drops to $45 or lower at the March expiration.