Market Overview

Carter Worth And Mike Khouw's Regional Bank Trade

Carter Worth And Mike Khouw's Regional Bank Trade

On CNBC's "Options Action," Carter Worth of Cornerstone Macro suggested investors should consider making a bullish bet in regional banks.

He analyzed a chart of SPDR S&P Regional Banking ETF (NYSE: KRE) and noticed it broke above its 150-day moving average. He thinks this change in trend is important and he sees it as the beginning of a move higher. Worth has also noticed KRE significantly outperformed the S&P 500 in October and he thinks the outperformance is likely to continue.

To make a bullish bet, Mike Khouw wants to sell the November $43 call for $1.15 and buy the January $43 call for $2.25. He is hoping the stock is going to stay below $43 at the November expiration and then rally above $44.10.


Related Articles (KRE)

View Comments and Join the Discussion!

Posted-In: Carter WorthLong Ideas Sector ETFs Options Markets Media Trading Ideas ETFs