Time Warner Might Be The Best Way To Play The Media Sector

Carter Worth spoke on CNBC's Options Action about the media sector. He shared with the audience his analysis and showed that the sector has underperformed Consumer Discretionary SPDR (ETF) XLY in the last two years and outperformed both S&P 500 and Consumer Discretionary SPDR (ETF) in the last month.

Worth believes the strength in the media space is going to continue and he suggested the best way to trade this idea is by taking a long position in Time Warner Inc TWX. He thinks that the stock has bottomed and it's going higher to $84 or $85.

Related Link: What's The Single Best $10,000 Investment To Hold For The Next 25 Years?

Mike Khouw doesn't expect a sharp move higher in Time Warner and he thinks the best way to take a long position is by selling the July 75 puts for $2.15.