Dan Nathan's Citigroup Inc Trade

On CNBC's Options Action, Dan Nathan suggested that investors should consider a bearish options strategy in Citigroup Inc C. He thinks that the U.S. banks are going to trade lower and he sees Citigroup Inc as the worst among them. He also believes that European banks are going to test their lows. Nathan doesn't think that the Fed is going to increase interest rates this summer and he added that he expects to see negative trends in Citigroup Inc's business segments that are not related to expectations about interest rates. Options prices for Citigroup Inc are pretty cheap and Nathan wants to buy the September 45 puts for $2.30 to make a bearish bet. He thinks that the stock could test $35. The trade breaks even at $42.70 or approximately 6 percent lower from the current stock price.