Alan Knuckman of Bulls-Eye Option said on Bloomberg Markets that he would buy Petroleo Brasileiro SA Petrobras (ADR)PBR, because it could benefit from the strength in crude oil.
He added that crude oil bounces back after each push lower, which makes him believe it could make a move toward $60. Knuckman thinks a move higher in crude oil could push Petrobras toward $16.
He wants to exploit a potential move higher by purchasing the January 2018, 7 strike call for $4. The trade breaks even at $11 or 5.57 percent above the current market price and if the stock moves to $16, Knuckman would have a return of more than 100 percent.
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