Carter Worth And Mike Khouw's Utilities SPDR ETF Trade

Carter Worth spoke on CNBC's Options Action about the utilities sector and he said that he expects it to move higher.

He believes the sector is oversold and it is now trading at a support, because the current retracement from its highs is 50 percent from the distance between its lowest and the highest price in the last two years. He explained that the current weakness is caused by a move higher in bonds and he added that he expects to see new lows for bonds.

Mike Khouw suggested a bullish options strategy in Utilities SPDR (ETF) XLU. He wants to buy the January 48 call for $1.55. The break even for the trade is at $49.55 or 3.8 percent higher from the current stock price.