Carter Worth And Mike Khouw's Transportation ETF Trade

Carter Worth of Cornerstone Macro spoke on CNBC's "Options Action" about iShares Transportation Average ETF IYT. He said the index is stalling of late and has underperformed the S&P 500. He expects to see a pullback in IYT, and he thinks it could come back to at least its trend line.

Mike Khouw wants to buy a put spread to make a bearish bet. Specifically, he wants to buy the February $215/$195 put spread for $4.50. The trade breaks even at $210.50 or 4.95% below the current stock price and it can make a maximal profit of $15.50.