Carter Worth spoke on CNBC's Options Action about the retail sector and its ETF, SPDR S&P Retail (ETF) XRT.
He identified a head and shoulders pattern in the ETF and he believes it's going to fail to beat the resistance at $45 and head lower.
To make a bearish bet, Mike Khouw suggested an options strategy. He wants to buy the December 45 put in SPDR S&P Retail (ETF) for $1.90. The trade breaks even at $43.10 or 4.22 percent lower from the current stock price. He added that the premium is not cheap relative to the cost of XRT, but if it trades lower he would sell a put and create a put spread.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.