Mike Khouw's Bearish Facebook Trade

Loading...
Loading...

On CNBC's "Options Action", Mike Khouw spoke about a bullish options strategy in Facebook Inc FB ahead of earnings.

Instead of buying the stock, which is trading close to its highs, Khouw wants to make a bullish bet using options. He wants to buy the September 170/180 call spread for $2.50. The trade breaks even at $172.50 or 4.91 percent above the current stock price. If the stock jumps to $180 or higher, the trade is going to reach its maximal profit of $7.50.

Posted In: CNBCOptionsMarketsMediaMike KhouwOptions Action
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...