Carter Worth And Mike Khouw's Apple Trade

On CNBC's "Options Action," Carter Worth spoke about Apple Inc. (NASDAQ: AAPL). He said that its behavior since January has been very poor. In March, it fell just as much as the market and it rebounded only 35%. Worth is worried about its relative performance versus PowerShares QQQ Trust, Series 1 (NASDAQ: QQQ), because it continues to stall. He sees that as a problem and he is skeptical going into the earnings.

Mike Khouw has a short position in Apple. He said that it is hard for him to be optimistic about the stock. The implied volatility remains high so Khouw wants to sell the May $260 put for $5.25 and buy the July $265 put for $15. The trading structure would cost him $9.75 and he is hoping that the stock is going to stay above $260 at the May expiration and then decline below $255.25, which is around 10% below the closing price on Friday.

See more from Benzinga

• Gene Munster Sees Apple And Tesla As Biggest Winners This Earnings Season

• 'Options Action' Traders Weigh In On Apple, S&P 500, Crude Oil

• Todd Gordon's Bearish QQQ Trade

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.