Alan Knuckman's Bullish Valeant Trade

Alan Knuckman of Bulls-Eye Option spoke on Bloomberg Markets about a bullish options strategy in Valeant Pharmaceuticals Intl Inc VRX.

He wants to sell the February 13 put in Valeant Pharmaceuticals for $0.65. The trade breaks even at $12.35 or approximately 9 percent below the current market price. Knuckman explained that he's using a cash secured naked put as a way to get in the stock at a lower price level or to get paid not to enter the position.

Knuckman added that the trade offers a chance to get in Valeant Pharmaceuticals at a price level not seen since 2008.