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Dan Nathan's SPDR S&P Retail Trade


CNBC Options Action's Dan Nathan suggested on the show a bearish options strategy in SPDR S&P Retail (ETF) (NYSE: XRT).

Nathan wants to sell the December 90 put for $0.70 and buy the March 90 put $2.40. He would have to pay $1.40 for this calendar put spread. Nathan believes that the retailers will trade sideways in the next couple of weeks and after the holiday season he expects the space to trade lower. If SPDR S&P Retail (ETF) stays above $90 at December expiration and closes below $88.60 at March expiration, the trade is going to be profitable.

SPDR S&P Retail (ETF) jumped 0.13 percent on Friday and closed at $92.68.


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