Carter Worth And Mike Khouw Say It's Time To Take Profits On VanEck Vectors Semiconductor ETF

On CNBC's "Options Action," Carter Worth advised viewers with a long position in VanEck Vectors Semiconductor ETF SMH to take profits or take a short position in the ETF. He said the sector has significantly outperformed the tech sector and the S&P 500, and he thinks the trade has become a little too crowded because the ETF is trading outside of its trend channel.

Mike Khouw agrees SMH looks a bit rich and extended. He said the reason the semiconductor sector outperformed the market is in the multiple expansion, as the P/E multiple of the sector significantly outperformed the P/E multiple of the broader market. To make a bearish bet, Khouw wants to buy the February $200 put for $5.15.