Mike Khouw's Bullish Roku Trade

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On CNBC's "Options Action", Mike Khouw suggested that investors should consider a bullish options trade in Roku Inc ROKU.

See Also: Roku CEO: 'Everyone Over Time Is Going To Shift Toward Streaming'

The stock moved significantly higher in the last two trading sessions and Khouw thinks the best way to get a long exposure is by selling a put option. He wants to exploit high implied volatility in the name and sell the January 35 put for $7. If the stock stays below $35 at the January expiration, Khouw is going to have to buy it, but his purchase price is going to be $28. Below that price level, he is going to lose money.

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Posted In: CNBCOptionsMarketsMediaTrading IdeasMike KhouwOptions Action
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