Carter Worth And Mike Khouw's Apple Options Trade

Carter Worth spoke on CNBC's Options Action about Apple Inc. AAPL. He noticed that the stock followed a certain pattern in the past. Every time it broke its trend line on the upside, it continued to move higher and every time it broke it to the downside it traded lower. Apple recently jumped above its trend line and Worth thinks it's going to continue to trade higher. He also noticed that it rebounded after its recent move lower at the 50 percent retracement, which is a bullish sign in his opinion.

Mike Khouw thinks the stock is probably going to trade sideways and he wants to sell the January 110 put for $3.50 to make money in a such scenario. He is going to collect the premium if Apple stays above $110 and he is going to start to lose money below $106.50.