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Dan Nathan's SPDR S&P Homebuilders Trade

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Dan Nathan spoke on CNBC's "Options Action" about a bearish options trade in SPDR S&P Homebuilders (NYSE: XHB). He is bearish because the recent new home sales were bad, despite the decrease in interest rates. Its chart also looks bad as the stock failed to break above its 52-week high and it fell below its trend line.

To make a bearish bet, Nathan wants to buy the September 40/35 put spread for $1.25. The trade breaks even at $38.75 or 2.56 percent below the current stock price.

Posted-In: CNBCSector ETFs Short Ideas Options Markets Media Trading Ideas ETFs

 

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