Here's How The Transportation Segment Is Likely To Move By Year's End

On CNBC's "Options Action," Carter Worth said there was earlier a lot of euphoria in the transportation segment iShares US Transportation ETF IYT

From March 23, 2020, which represents the lowest level amid COVID-19, to its peaking on May 10, 2021, the ETF added 142%. The SPDR S&P 500 ETF Trust SPY gained only 92% during this period, Worth said.

Since May 10, the IYT has declined by 3%, while the SPY has climbed 11%. Many believe this represents “a pause that refreshes” for the IYT, Worth mentioned. For the options market, “the trade is to bet that it stays where it is” and “a lot of money” can be made doing that, he added.

IYT could move between 3.5% higher to 4% lower from the current price by year's end, Worth said.