Dan Deming's Health Care SPDR (ETF) Trade

He explained how he thinks the sector is oversold and could react positively as the market stabilizes. He doesn't want to jump in the stock immediately, because there might be some more downside. Instead, he wants to use options to make a bullish bet.

Deming wants to sell the March 64 put and buy the March 68 call. With the trade, he is going to participate on the upside if the market trades above $68 at the March expiration. If the stock drops below $64, he is going to have to buy it at $64 or around 4 percent lower from the current market price.