Alan Knuckman's SunPower Trade

Speaking on Bloomberg Markets, Alan Knuckman of Bulls Eye Option suggested a bullish options strategy in SunPower Corporation SPWR.

He thinks that the stock is oversold and he expects to see a bounce back to $12. To make a bullish bet, Knuckman wants to buy the January 5 call for $2.75. The trade breaks even at $7.75 or 5.30 percent above the closing price on Monday. If the stock rallies to $12, Knuckman is going to make a profit of $4.25 on this trade.