Alan Knuckman's Sears Trade

Loading...
Loading...

Speaking on "Bloomberg Markets," Alan Knuckman of ‎Bulls Eye Option suggested a bullish options strategy in Sears Holdings Corp SHLD.

He wants to sell the June 7 put for $0.40. If the stock stays above $7 at the June expiration, he is going to collect $0.40. If it drops below $7, he is going to have to buy the stock at $7 — but it would actually cost him $6.60. The trade starts to lose money below $6.60. Knuckman added that with this strategy, investors have a chance to buy the stock they like 15 percent below the current stock price.

Posted In: OptionsMarketsMediaTrading IdeasAlan KnuckmanBloomberg Markets
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...