Andrew Keene's Bearish XLE ETF Trade

On CNBC's Trading Nation, Andrew Keene of AlphaShark suggested a bearish options strategy in Energy Select Sector SPDR (ETF) XLE.

He noticed that Energy Select Sector SPDR (ETF) broke out above its resistance, but he thinks it's a fake breakout, which is not going to hold. Keene wants to use options to fade the rally. He wants to buy the March 70/67 put spread for $1. The trade breaks even at $69 or 5.19 percent lower and it can maximally make a profit of $2 if the stock drops to $67 or lower.