Still Bearish On Oil? Option Experts Discuss The Commodity's Outlook

CNBC Options Action's traders discussed on the show the recent rally in crude oil. Mike Khouw said that it seems to him that crude oil jumped too high, too soon and he thinks that there could be a pullback ahead.

Guy Adami noticed that crude oil reversed on the downside for the first time since the rumors about a possible production cuts started. He added that Chevron Corporation CVX, at 40 times price-to-earnings, looks expensive.

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Dan Nathan also has a bearish view and he believes that concerns about global growth still exist. He thinks that a pullback in crude oil could be ahead, because it's trading close to its 200-day moving average and the last two countertrends failed to get above it.

Nathan wants to make a bearish bet in the energy space by purchasing the June 60/56 put spread in Energy Select Sector SPDR (ETF) XLE for $1. The breakeven for the trade is at $59 or 7 percent lower and it can maximally make $3.