Carter Worth And Mike Khouw's Consumer Staples ETF Trade

On CNBC's "Options Action", Carter Worth shared with the viewers his technical analysis of Consumer Staples Select Sect. SPDR XLP.

He noticed on its chart a double top pattern and he thinks that the stock is not going to break out above the recent highs. He expects to see a pullback from its current price level because of its poor relative performance to the S&P 500 during the recent rally.

To make a bearish bet, Mike Khouw suggested a purchase of the June 56 put for 75 cents. The trade breaks even for $55.25 or 3.04 percent lower from the closing price on Friday.