Carter Worth And Mike Khouw's TLT Trade

Carter Worth spoke on CNBC's "Options Action" about iShares Barclays 20+ Year Treasury Bond TLT. He noticed on the chart that the stock has completed its inverse head and shoulders pattern and its bullish cup and handle pattern and he expects to see a pullback.

Mike Khouw suggested a purchase of the August 130 puts for $2 as a way to make a bearish bet. The trade breaks even at $128 or 2.9 percent lower.