Carter Worth And Mike Khouw's Industrial ETF Trade

On CNBC's Options Action, Carter Worth spoke about performance of The Industrial Select Sector SPDR Fund XLI since the presidential election and he concluded that the sector managed to outperform the market only in the first week after the election. He believes the industrial stocks are going to trade lower and he would sell The Industrial Select Sector SPDR Fund.

Mike Khouw suggested that investors should buy a put spread in The Industrial Select Sector SPDR Fund to make money from a potential move lower. He wants to buy the April 65/62 put spread for a total cost of $0.70. The trade breaks even at $64.30 or 2.41 percent below the current market price and it can maximally make a profit of $2.30.