Dan Nathan's Bearish Bank Of America Trade

Dan Nathan suggested on CNBC's Options Action that investors should consider a bearish options strategy in Bank of America Corp BAC.

He thinks Bank of America has a lot of exposure to the United Kingdom and he expects it to trade lower. Nathan wants to use a simple options strategy to make a bearish bet. He wants to buy the August 13 put for $0.50. The breakeven for the trade is at $12.50 or 4.58 percent lower from the current stock price.

Nathan added he is also bearish on other U.S. banks and thinks investors who want to take a short position in the sector can throw a dart to pick the best candidate.