Carter Worth And Mike Khouw's XLE Trade

Carter Worth shared with the viewers of CNBC's "Options Action" his bullish technical view on Energy Select Sector SPDR XLE.

He said that XLE is up seven weeks in a row and that has only happened eight times in history of the sector. The follow through after such event is usually pretty big, said Worth. On average, after a seven week streak, the energy sector gained 2.4% in three months, 8.9% in six months and 14.7% in 12 months.

Worth expects the stock to fill the March 6 gap and move to $42. He is bullish on the stock and he wants to stay long.

Mike Khouw suggested an options strategy to make a bullish trade. He wants to sell the June $41.21 call for $1 and buy the September $38.21 call for $3.85. The total cost for the trade is $2.85 and Khouw wants the stock to stay below $41.21 at the June expiration and then jump above $41.06.