Kevin Kelly's Apple Trade

Kevin Kelly of Recon Capital Partners spoke on Bloomberg Markets about a bullish options strategy in Apple Inc. AAPL.

After Goldman Sachs released a positive note about Apple on Tuesday, saying that the bad news is already priced in, Kelly decided to create a bullish options strategy for the stock.

He wants to sell the May 85 put and buy the May 105 call and the whole structure would cost him $0.50. If the stock drops below $85 at the May expiration, he would have to buy it and his entry price would be $85.50. At the May expiration, the trade is going to be profitable if the stock jumps above $105.50.