Market Overview

Alan Knuckman's Petrobras Trade

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Alan Knuckman of Bulls-Eye Option said on Bloomberg Markets that he would buy Petroleo Brasileiro SA Petrobras (ADR)(NYSE: PBR), because it could benefit from the strength in crude oil.

He added that crude oil bounces back after each push lower, which makes him believe it could make a move toward $60. Knuckman thinks a move higher in crude oil could push Petrobras toward $16.

He wants to exploit a potential move higher by purchasing the January 2018, 7 strike call for $4. The trade breaks even at $11 or 5.57 percent above the current market price and if the stock moves to $16, Knuckman would have a return of more than 100 percent.

Posted-In: Alan Knuckman Bloomberg MarketsOptions Markets Media

 

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