Market Overview

Carter Worth, Mike Khouw's Procter & Gamble Trade


On CNBC's "Options Action," Carter Worth shared with the viewers his bearish point of view of Procter & Gamble Co (NYSE: PG). He thinks the stock is a bit hot, as it has significantly outperformed its peers. Over the last year it gained 24%, while XLP gained only 10%. In the last five years it jumped 93% and the consumer staples ETF added only 33%. Procter & Gamble is so much ahead of its sector that it would be right to take profits or reduce exposure, Worth said.

Mike Khouw wants to use a put spread diagonal to make a bearish trade. He wants to buy the January $145 put for $6.25 and sell the November $140 put for $2.25. The total cost for the trade would be $4. Khouw is selling the November expiration put because the implied volatility is elevated in the short term and he doesn't expect a sharp move lower after the earnings report, which is scheduled for Tuesday.


Related Articles (PG)

View Comments and Join the Discussion!

Posted-In: Carter Worth CNBC Mike Khouw Options ActionOptions Markets Media

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at