What's REX Capital Group's Jonathan Kleisner doing, with the markets in a spin? Two answers: straddles and black gold.
"This is an option strategy where you buy both a call and a put option simultaneously," Kleisner explained.
"It takes the directionality out of the trade; you're simply trading that volatility, and as long as you have continued volatility, that's going to help you. You're actually aggregating the price paid for the put and the call, and, hopefully, selling that package at a higher price."
With stocks in a whirlpool, gold and oil have emerged as viable alternatives for investors. Which one does Kleisner prefer?
"I'd do oil," he told CNBC. "The capitulation, liquidation that we saw in the last two weeks was absolutely merciless. I think you had a buying opportunity in the energy sector that we may never see again."
United States Oil Fund
PowerShares DB Oil
iPath S&P GSCI Crude Oil Total Return Index ETN
Oil Refinery Stocks:
Disclosure information was not available for Kleisner or his company.