Carter Worth And Mike Khouw's 3M Co Trade

Loading...
Loading...

On CNBC's "Options Action", Carter Worth spoke about 3M Co MMM. He thinks the stock has moved too much, too fast and he wants to take profits or initiate a short position in the name.

Worth explained that the stock had a sharp breakout on the upside and after such breakouts there is usually a pullback to the trend line. He believes it's going to pullback to $195, which would be consistent with the previous pullbacks in the stock. He is also bearish because The Industrial Select Sector SPDR Fund XLI has under performed the S&P 500 during the latest rally and he finds that as a sign of weakness.

Mike Khouw wants to buy the August 210/200 put spread for $2.45. The trade breaks even at $207.55 or 2.51 percent below the current stock price. It can maximally make a profit of $7.55.

Date of Trade
ticker
Put/Call
Strike Price
DTE
Sentiment
Posted In: CNBCShort IdeasOptionsMarketsMediaTrading IdeasCarter WorthOptions Action
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...