On CNBC's "Options Action", Carter Worth spoke about 3M Co MMM. He thinks the stock has moved too much, too fast and he wants to take profits or initiate a short position in the name.
Worth explained that the stock had a sharp breakout on the upside and after such breakouts there is usually a pullback to the trend line. He believes it's going to pullback to $195, which would be consistent with the previous pullbacks in the stock. He is also bearish because The Industrial Select Sector SPDR Fund XLI has under performed the S&P 500 during the latest rally and he finds that as a sign of weakness.
Mike Khouw wants to buy the August 210/200 put spread for $2.45. The trade breaks even at $207.55 or 2.51 percent below the current stock price. It can maximally make a profit of $7.55.
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