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On Friday’s CNBC’s Options Action, the crew analyzed the performance of the industrial sector. Industrials have rallied since the beginning of the year, however it has lagged relative to the overall market. 3M has outperformed the industrial sector by a substantial margin recently, suggesting a possible pullback. Coupled with flat top-line growth and a steep rally since Dec, suggests a possible pullback towards the $195 support level. Expecting a checkback to support, Michael Khouw suggested buying an Aug 210/200 Put Spread for an $2.45 Debit.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: CNBC Options Action

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