Dan Nathan's Bearish Semiconductor ETF Trade

Dan Nathan spoke on CNBC's "Options Action" about VanEck Vectors Semiconductor ETF SMH. The semiconductor stock could trade lower into the year end, said Nathan.

He suggested a bearish options strategy to make money in case of a potential move lower. Nathan wants to buy the January 102/90 put spread for a total cost of $3. The trade breaks even at $99 or 3.83 percent below the current market price and it can maximally make a profit of $9.