On CNBC's "Options Action," Mike Khouw spoke about crude oil. He named a few, usually, bullish signs for the commodity, the reopening, summer driving, backwardation in the futures contracts and Goldman Sachs' $80 price target.
But when everybody is looking up, sometimes you want to take a pause and wonder whether it's a little bit overexuberant, said Khouw. He wants to bet that oil could pause a bit before it goes higher.
To make a bearish bet in crude oil, Khouw wants to sell the June $45/$48 call spread in United States Oil Fund LP (NYSE:USO) for $1.05. The trade breaks even at $46.05 or 3.65% above the current stock price. If the stock trades to $48 or higher, Khouw can maximally lose $1.95.