David Bartosiak's Ulta Salon, Cosmetics & Fragrance Trade

David Bartosiak spoke on Bloomberg Markets about an options strategy in Ulta Salon, Cosmetics & Fragrance, Inc. ULTA.

He explained that implied volatility in the name is high ahead of earnings and he wants to use an iron condor strategy to make money. Bartosiak wants to sell the August 26, 285/295 call spread and the August 245/235 put spread for $3.90. If the stock stays above $245 and below $285 at the August 26 expiration, Bartosiak is going to collect the premium. If the stock closes above $295 or below $235, he is going to record a maximal loss of $6.10.

The company reports earnings on August 25 and options market currently implies an 8 percent move in either direction.