Speaking on Bloomberg Markets, Kevin Kelly of Recon Capital Partners shared with the viewers his bearish options strategy in Energy Select Sector SPDR (ETF) XLE.
Kelly wants to buy the December 64/56 put spread for $2.40. The trade breaks even at $61.60 or 4.60 percent below the current stock price. If the stock drops 13.27 percent at the December expiration, the trade is going to reach its maximal profit of $5.60.
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