Dan Nathan's Goldman Sachs Options Trade

The financial stocks have underperformed the S&P 500 this year, and Nathan thinks that the group might continue to struggle. He analyzed the price action of Goldman Sachs, and he noticed that it dropped around 13 percent from its 52-week high. It had a really bad quarterly earnings report and failed to recover after the price decline. Nathan believes the stock could continue to trade lower, and he thinks it is going to reach $200. To make a bearish bet, he wants to buy the July 220/195 put spread for $5.

The trade breaks even at $215 or 3.82 percent below the current stock price. It can make a maximal profit of $20.