Speaking on Bloomberg Markets, Jim Strugger of MKM Holdings said he's looking into a long options strategy in Goldman Sachs Group Inc GS ahead of earnings.
The company is going to report earnings on July 19 and it usually moves 3 percent, which is what the market implies at the moment. To make a bullish bet, Strugger wants to buy the October 160/180 call spread for $3.70. The breakeven for the trade is at $163.70 at the October expiration and it can maximally make $16.30.
Strugger explained that this trade is good for traders who still see risk in the market, but want long directional exposure.
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