Carter Worth And Mike Khouw's QQQ Trade

Carter Worth spoke on CNBC's "Options Action" about PowerShares QQQ Trust, Series 1 (ETF) QQQ.

He said that PowerShares QQQ Trust, Series 1 (ETF) outperformed the S&P 500 significantly since 2008. Worth also noticed that the stock has recently broke out of its uptrend channel and he thinks that it is going to pull back and return into the channel. He expects to see a pull back of 3 to 5 percent.

Mike Khouw suggested a bearish options strategy in the name. He wants to buy the September 138/130 put spread for $2.25. The trade breaks even at $135.75 or 1.46 percent below the current stock price. If the stock closes at least 5.63 percent lower at the September expiration, the trade is going to reach its maximal profit of $5.75.