Mike Khouw's Electronic Arts Inc. (ERTS) Trade

Carter Worth and Mike Khouw talked about Electronic Arts Inc. ERTS on CNBC's Options Action. Carter Worth analyzed 2-year, 5-year and 20-year chart and concluded that ERTS is in a well defined down trend. He also noted that its relative strength is pretty poor. Carter Worth is a seller of this stock. Mike Khouw is also bearish on Electronic Arts Inc. (ERTS). He wants to sell the January 15 put for $0.70, and use the proceeds to buy two January 14 puts for a total of $0.70. He expects this trade to take off before the end of the year, and it will do that if ERTS goes down. Electronic Arts Inc. (ERTS) fell 1.22% today, and closed at $15.35.