Carter Worth And Mike Khouw's Bristol-Myers Squibb Options Trade

On CNBC's "Options Action," Carter Worth spoke about price action in Bristol-Myers Squibb Co BMY.

He showed on the chart that Bristol-Myers has been underperforming Health Care SPDR XLV since 2016, but in the last two months it's performing better than the sector. Worth thinks that at minimum, the stock could return to trend and trade higher to $55.

Khouw suggested that investors should buy the Dec. $50 call in Bristol-Myers for $2.50. The trade breaks even at $52.50 or 3.37% above the current stock price.