Carter Worth And Mike Khouw's Real Estate ETF Trade

Carter Worth spoke on CNBC's Options Action about iShares Dow Jones US Real Estate (ETF) IYR. He compared its performance with the performance of Utilities SPDR (ETF) XLU and he concluded that although they're usually very correlated, iShares Dow Jones US Real Estate (ETF) underperformed in the last year.

He added that recently iShares Dow Jones US Real Estate (ETF) has started to perform better than Utilities SPDR (ETF), which is in his opinion a bullish sign and a reason to buy the stock. Worth also noticed that it has a better dividend yield than Utilities SPDR (ETF).

Guy Adami said he's also bullish on iShares Dow Jones US Real Estate (ETF) and he believes it's going to trade to $85.

Mike Khouw suggested that traders should buy the September 79 calls in iShares Dow Jones US Real Estate (ETF) for $2.40. The trade breaks even at $81.40 or 3.71 percent higher.