Mike Khouw's Amazon Options Trade

Mike Khouw recommended on CNBC's Options Action a stock replacement strategy in Amazon.com, Inc. AMZN.

He thinks that it would be a good idea to close a long position in the name and buy the June 925/1,000 call spread for a total cost of 18.25. The trade breaks even at $943.25 or 5.41 percent above the closing price on Friday. It can maximally make a profit of $56.75, if the stock jumps at $1,000 or higher.