Scott Nations' Crude Oil Trade

Scott Nations of Nations Indexes suggested on CNBC's "Futures Outlook" that investors should consider selling crude oil. He is concerned about the commodity because it traded lower on the bullish news of a decline in inventory. Despite the decline, inventory is still around 14% higher than the five-year average for this time of the year.

To make a bearish trade, Nations wants to sell the October futures contract in crude oil at $42. His stop loss is at $43 and he has a target price of $39. He is risking $1,000 to make $3,000.