On CNBC's Trading Nation, Andrew Keene recommended a short position in SPDR S&P Oil & Gas Explore & Prod. (ETF) XOP.
Keene analyzed a daily chart of SPDR S&P Oil & Gas Explore & Prod. (ETF) and he showed that the stock had three false breakouts in the last six months. He thinks the recent rally is going to be another false breakout and believes the stock is going to test $35, which is its 50-day and 100-day moving average.
To place a bearish trade, Keene wants to buy the December 36/35 put spread for $0.30. The break even for the trade is $35.70 or 6.25 percent lower from the current stock price and he can maximally make a profit of $0.70.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.