Mike Kouw's Verizon Trade

Mike Khouw talked on CNBC's Options Action about his Verizon Communications Inc. VZ trade. On July 18th, he recommended a purchase of the January 50 call for $2.10. At the time the stock was trading at $50.75 and after he initiated the long position, the stock gained 2% and it closed at $51.76 on July 30th. In the last two trading session, Verizon struggled like the rest of the market and on Friday it closed at $49.83 or 3.73% lower of the July 30th closing price. Mr. Khouw said that he is definitely going to stick with this trade. He explained that the stock has declined a lot more than the option, which is only down approximately 20 cents. Rising yields should not affect much this stock, thinks Mike Khouw. He has a lot of time until the option's expiry in January. Carter Worth commented that he likes Verizon and that nothing has changed on the pattern basis and he would stay on this course.