Carter Worth And Mike Khouw's Tesla Short

Carter Worth said on CNBC's "Options Action" that he would take profits in Tesla Inc (NASDAQ: TSLA) after the recent rally. He believes there's going to be a pullback in the name and he would even consider shorting the stock.

Mike Khouw believes the best way to take a short position in Tesla is by selling the July 375/395 call spread for $8. The trade starts to lose money above $383 or 3.12 percent above the current stock price and it can maximally lose $12. If the stock stays below $375 at the July expiration, Khouw is going to collect $8.