Chris Kettenmann's Oil ETF Trade

Speaking on Bloomberg Markets, Chris Kettenmann, the chief energy strategist at Macro Risk Advisors, shared his options trading idea in United States Oil Fund LP (ETF) USO.

He wants to sell the May 10.50 straddle for $0.49, which is 4.68 percent of the current stock price. The trade starts to lose money if the stock jumps above $11 or falls below $10 at the May expiry. Kettenmann added that the straddle expires a day after the May 25th OPEC meeting and he is betting that volatility is going to decline.