Carter Worth And Mike Khouw's JETS Trade

On CNBC's "Options Action," Carter Worth spoke about a bullish trade in US Global Jets ETF (NYSE:JETS).

He wouldn't invest in the airline sector, but he sees some bullish signs to bet on a move higher. The airlines are among the sectors that have been hit the most by the pandemic and there is still a lot of bad news, but they managed to hold above their March lows, so Worth wants to buy the stock, just as a trade.

To make a bullish bet in JETS, Khouw wants to sell the November $15 put, buy the November $17 call and sell the November $20 call for a zero net premium. With the trade, he can make $3, if the stock jumps to $20 or higher. If it trades below $15, Khouw is going to have to buy it at that price.