Andrew Keene's SPDR S&P Oil & Gas Explore & Prod. ETF Trade

On CNBC's Trading Nation, Andrew Keene recommended a short position in SPDR S&P Oil & Gas Explore & Prod. (ETF) XOP.

Keene analyzed a daily chart of SPDR S&P Oil & Gas Explore & Prod. (ETF) and he showed that the stock had three false breakouts in the last six months. He thinks the recent rally is going to be another false breakout and believes the stock is going to test $35, which is its 50-day and 100-day moving average.

To place a bearish trade, Keene wants to buy the December 36/35 put spread for $0.30. The break even for the trade is $35.70 or 6.25 percent lower from the current stock price and he can maximally make a profit of $0.70.