Carter Worth And Mike Khouw's Financial Select Sector SPDR Fund Trade

On CNBC's "Options Action", Carter Worth spoke about Financial Select Sector SPDR Fund XLF. He thinks the stock is about to break out on the upside. Worth explained that the stock hasn't moved much since March and the rest of the market traded higher. This could be an opportunity or a trap, added Worth. He sees the situation as an opportunity and he is a buyer of Financial Select Sector SPDR Fund.

Mike Khouw thinks that the best way to make a bullish bet is by purchasing the October 25 call for 88 cents. The call is in the money and it breaks even at $25.88 or 1.93 percent above the closing price on Friday. Khouw explained that the position is similar to owning the stock and the October 25 put.