Carter Worth And Mike Khouw's Apple Trade

On CNBC's "Options Action," Carter Worth spoke about Apple Inc. AAPL. He said that the stock returned to its former high and now it is facing an overhead supply as people who didn't sell in February and who were lucky to buy the bottom want to exit now.

Mike Khouw wants to use a cover call strategy in Apple. He wants to sell the July $330 call for $7.60 against a long stock position. The trade offers more than 2% of the current stock price in terms of yield, explained Khouw.