Jim Strugger of MKM Holdings spoke on Bloomberg Markets about a bullish options strategy in Infinera Corp. INFN.
The stock fell 37 percent from its highs after Ciena Corporation CIEN guided lower in December. The company is going to report earnings on February 11 and Strugger expects that it is going to be better than expected. To make a bullish bet, he wants to buy the March 15/20 call spread for $1.40.
The trade breaks even at $16.40 or 9.26 percent higher from its closing price on Monday. If the stock jumps to $20 or higher Strugger can maximally make $3.60.
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