Carter Worth And Mike Khouw's Bearish Gold Trade

Carter Worth analyzed on CNBC's Options Action the price action in SPDR Gold Trust (ETF) GLD. He thinks it has had a good run, but now it looks tired.

The stock reached its 52-week high in July 2016 and after that it traded sideways for a couple of months. It moved lower in November and it reached its 52-week low in December. After it bounced off its lows, SPDR Gold Trust (ETF) traded higher in January and February and now it's trading close to the 50 percent retracement.

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Worth believes that SPDR Gold Trust (ETF) looks weak and he would take profits or sell calls in the name.

Mike Khouw suggested a bearish options strategy in SPDR Gold Trust (ETF). He wants to buy the May 116/107 put spread for $2.25. The trade breaks even at $113.75 or 3.20 percent below the current market price. It can make a maximal profit of $6.75.