Dan Nathan's Utilities ETF Trade

On CNBC's Options Action, Dan Nathan spoke about stocks that could be a safe haven if the market continues to struggle.

Nathan believes that the utilities sector should offer the best protection, despite the popular opinion that an increase in interest rates should hurt dividend paying stocks. He suggested that investors should buy call options in Utilities SPDR (ETF)XLU.

Specifically, he would buy the February 42 call for $1. The break even for the trade is at $43 or approximately 3 percent higher from the closing price on Friday.