Jim Strugger's Mattel Trade

Speaking on Bloomberg Markets, Jim Strugger suggested a bullish options strategy in Mattel, Inc. (NASDAQ: MAT) ahead of earnings.

The company is going to report earnings on February 1 and Strugger wants to buy a bullish risk reversal to get a long exposure. He wants to sell the February 28.50 puts and buy the March 32 calls for a total debit of $0.15. The trade breaks even at $32.15 or 6.32 percent above the current market price. If Mattel drops below $28.50, Strugger is going to have to buy the stock at that price.