Carter Worth And Mike Khouw's Tesla Short

Carter Worth said on CNBC's "Options Action" that he would take profits in Tesla Inc TSLA after the recent rally. He believes there's going to be a pullback in the name and he would even consider shorting the stock.

Mike Khouw believes the best way to take a short position in Tesla is by selling the July 375/395 call spread for $8. The trade starts to lose money above $383 or 3.12 percent above the current stock price and it can maximally lose $12. If the stock stays below $375 at the July expiration, Khouw is going to collect $8.