Jim Strugger's Yahoo! Inc. Trade

Speaking on Bloomberg Markets, Jim Strugger of MKM Holdings revealed his options trading strategy for Yahoo! Inc. YHOO ahead of earnings. He likes Yahoo! Inc. and he thinks that possible catalysts for a move higher are the stake in Alibaba Group Holding Ltd BABA and the restructuring that is going to take place. Strugger said that the options market is implying a 7 percent move on earnings and he expects to see a larger move after the event. To make a bullish bet he wants to buy the March 30 call options, which were trading around $1.55 at the end of the session on Wednesday. The break even for the trade is at $31.55 or 9.62 percent higher from Yahoo! Inc.'s closing price.