With the Federal Reserve announcement behind us, we want to put some more capital to work.

The Fed increased interest rates by 0.25% yesterday, as expected, while also indicating that it may pause its rate-hike cycle.

Regional bank stocks are tanking today following news that California-based PacWest Bancorp is exploring a sale.

We’re going with a put on the SPDR S&P Biotech ETF (XBI) today, as it should remain unaffected by the continued turmoil in the financial sector. The ETF has been on a steady climb over the past month despite some intraday volatility.

Please do not chase the trade by accepting less premium than the “go as low as” price recommended below. Work your limit orders but exercise patience and let the trade come to you.

Current Stock Price: $82.89

Action: Sell to open XBI 12 May 80.50 Put

Current Option Price: $0.82-$0.86

Recommended Limit: Set your initial limit order at $0.84. You can go as low as $0.72, but please don’t start there and always use limit orders.

Expiration: After the close on Friday, May 12

Potential Rate of Return: 1% in eight days if this option expires worthless