Mike Khouw's Apple Options Trade

On CNBC's "Options Action", Mike Khouw recommended a long position in Apple Inc. AAPL. The stock is trading close to its all-time highs, so he wants to use options to limit risk.

Khouw wants to buy the October 230/245 call spread for a total cost of $4.40. The trade breaks even at $234.40 or 2.97 percent above the current stock price. If the stock jumps to $245 or higher at the October expiration, the trade is going to reach its maximal profit of $10.60.