On CNBC's "Options Action," Carter Worth spoke about SPDR S&P Retail (NYSE:XRT). He said that the retail sales report was bullish as it showed higher retail spending than pre-pandemic levels, but he is worried that good news is already priced in.

The one-year comparative chart shows that XRT managed to double the performance of SPY as they gained 36% and 18% respectively and Worth believes that this is not sustainable. He analyzed XRT's performance relative to its 150-day moving average and concluded that it is now exactly as high as it was coming off from the 2009 crash and ricochet.

He is also concerned about XRT's performance relative to XLY because it has never traded above the downtrend line of the ratio.

Worth believes that XRT is overbought and he expects it to fail. He advised viewers to hedge, trim or take some measures.

To make a bearish bet, Mike Khouw wants to buy the October $50 put for $1.85. The trade breaks even at $48.15 or around 6.6% below the closing price on Friday.