Carter Worth's Select Sector Financial Slct Str SPDR Fd Trade

On CNBC's Options Action, Carter Worth analyzed Select Sector Financial Slct Str SPDR Fd (NYSE: XLF) from a technical standpoint. He said that the ETF is trading near its highs and it broke below its short-term trend line on Friday.

Worth presented a long-term chart which shows a long-term trend line for Select Sector Financial Slct Str SPDR Fd. The ETF is currently trading significantly higher above the trend line and Worth believes that it could move back to it, which would imply a 12 to 15 percent move lower.

Mike Khouw suggested an options strategy in Select Sector Financial Slct Str SPDR Fd. He would buy the November 24 put for $0.90 and sell the November 22 put for $0.35. The put spread would cost him $0.55 and he can maximally make $1.45 if the ETF trades to $22.