Benzinga | Mar 15, 2021 07:54AM EDT

Carter Worth And Mike Khouw's 3M Co Trade

Carter Worth of Cornerstone Macro said on CNBC's "Options Action" that he is a buyer of 3M Co (NYSE:MMM). Since the March 2020 lows, the stock underperformed the Industrial Select Sector SPDR Fund (NYSE:XLI), but Worth noticed a bearish to bullish reversal and a reversed head and shoulders pattern on its chart.

Mike Khouw suggested a bullish options trade in the name. He wants to buy the July $190/$210 call spread for a net debit of $5.45. The trade breaks even at $195.45 or 5.69% above the closing price on Friday. It can reach its maximal profit of $14.55 if the stock jumps to $210 or higher. A move to $210 would represent a 13.56% move.