Carter Worth And Mike Khouw's Macy's Trade

On CNBC's "Options Action", Carter Worth spoke about Macy's Inc M. He said the stock is going to continue to trade lower and he advised the viewers to sell it. Worth explained that the stock significantly underperformed SPDR S&P Retail (ETF) XRT and it's in a downtrend. He expects the downtrend is going to continue.

Mike Khouw suggested a bearish options trade to get a short exposure in the name. He wants to buy the November 10 expiration 18.5/16.5 put spread for $0.60. The trade breaks even at $17.90 or 2.51 percent below the current market price. The put spread can maximally make $1.40.