Todd Gordon's Oil ETF Trade

On CNBC's "Trading Nation", Todd Gordon of TradingAnalysis.com suggested a bearish options strategy in United States Oil Fund LP (ETF) USO.

He said that crude oil is moving into a technical resistance, which is at $10.75, and he wants to use options to make a bearish position. He wants to buy the June 9th, 11/10 put spread for a total cost of $0.43. The trade breaks even at $10.57 or 0.28 percent below the current market price. If the premium drops to $0.22, he is going to close the position.