It will only get worse for this sector: Technician

The financials haven't been a great place to be recently. With only a 2.7 percent rise over the past three months, they've actually been the worst-performing of the 10 S&P 500 sectors over that time frame. And according to close chart-watchers, a rebound shouldn't be expected anytime soon.

"Financials continue to underperform the market month after month after month," wrote Sterne Agee chief market technician Carter Worth in a Monday note. "And if one excludes certain very strong, large-cap, marquee names that are buttressing the sector (such as Wells Fargo, Berkshire Hathaway, American Express) things would be even worse. …Bottom line: We retain the view that Financials are not a good place to be."

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

That view was echoed on Friday's "Options Action" by's Dan Nathan, who zeroed in on shares of Bank of America.

"You have a stock right here that I think, on a technical level, it broke that uptrend that's been in place for two years," he said.

Read MoreWhy there could be fireworks in the markets ahead of July 4

Looking ahead to the company's earnings report, Nathan predicted that "if you get disappointing earnings or outlook when they report Q2 on July 16th, I think the stock goes lower."

So to make a bearish bet, Nathan suggests buying the July 11th weekly/August put calendar for $0.24. This two-part trade consists of buying a put (which gives the owner the right to sell a stock at a given price) that expires in August, and selling a put that expires and July 11th in order to make the trade cheaper.

—By CNBC's Alex Rosenberg

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Host Bio

  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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