Andrew Keene's Bearish Wal-Mart Trade

On CNBC's Trading Nation, Andrew Keene suggested a bearish options strategy in Wal-Mart Stores Inc WMT.

He identified a technical resistance at $72 and he noticed that every time it reached that price level, over time it sold off. Keene sees weakness ahead for the retail sector and he thinks that Wal-Mart is going to drop to $65.

He wants to buy the May 67.5/65 put spread for $0.70. The trade breaks even at $66.80 or 4.39 percent below the current market price and he can maximally make a profit of $1.80 in case the stock drops to $65 or lower.