Todd Horwitz's Energy ETF Trade

Speaking on Bloomberg Markets, Todd Horwitz of Bubba Trading suggested an options trading strategy in Energy Select Sector SPDR (ETF) XLE.

He thinks the OPEC deal is not going to hold and he wants to buy a put diagonal spread to make a bearish bet.

Horwitz wants to buy the December 16th, 74 strike put and sell the December 2nd, 73 put for a total risk of $0.86. If Energy Select Sector SPDR (ETF) stays above $73 at the Friday expiration, he is going to have a long position in the December 16, 74 strike put at a lower price.