Mike Khouw's Polo Ralph Lauren Corporation (RL) Trade

Mike Khouw said on the show that he is bearish on Polo Ralph Lauren Corporation (NYSE:

), and he wants to use options to place the bearish bet. He is concerned with the valuation of this stock. Mike Khouw wants to buy the March 110 puts for $3.10, and sell the February 110 puts for $2.00. This trade would cost him $1.10, and he said that it would make the most money if Polo Ralph Lauren Corporation (

) trades at $110, at February expiration. Polo Ralph Lauren Corporation (

) gained 1.14%, and closed at $113.84 in the regular session. In the after hours, it dropped 1.41%.