Steve Sosnick's Financial Select Sector SPDR Fund Trade

Speaking on Bloomberg Markets, Steve Sosnick of Interactive Brokers suggested an options strategy in Financial Select Sector SPDR Fund XLF.

He wants to purchase the July 23 put for $0.35 to hedge a long position in the financial sector, which he sees as the weakest sector in the market. The financial sector has under performed in the last few months as it tested the $23 price level several times. Sosnick sees a strong support at $23, but if the stock breaks below the support, there could be a significant pull back. The trade breaks even at $22.65 or 3.41 percent lower.