Todd Gordon's Energy ETF Trade

Todd Gordon of TradingAnalysis.com suggested on CNBC's "Trading Nation" that traders should consider a bearish options trade in Energy Select Sector SPDR (ETF) XLE.

He thinks there is more room on the downside for crude oil, which could pull the energy stocks lower too. Gordon believes that Energy ETF could test $60. He wants to buy the July 65/60 put spread for $1.24. The trade breaks even at $63.76 or 1.97 percent below the current stock price and it can make a maximal profit of $3.76.