On CNBC's "Options Action", Mike Khouw recommended a long position in Apple Inc. AAPL. The stock is trading close to its all-time highs, so he wants to use options to limit risk.
Khouw wants to buy the October 230/245 call spread for a total cost of $4.40. The trade breaks even at $234.40 or 2.97 percent above the current stock price. If the stock jumps to $245 or higher at the October expiration, the trade is going to reach its maximal profit of $10.60.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in