Andrew Keene of AlphaShark shared with the viewers of CNBC's Trading Nation his bullish options trade in International Business Machines Corp. IBM.
He said that the stock is trading close to its 150-day moving average, which proved to be a support back in July. Keene believes that the stock could reach $165 price level. He also noticed a big purchase of the November 165 calls on Tuesday, which he sees as a bullish sign.
To make a bullish bet on IBM, Keene wants to buy the November 160/165 call spread for $1.10. The trade breaks even at $161.10 or 4.4 percent higher from the closing price on Wednesday. If the stock jumps to $165, he can maximally make $3.90.
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