Christian Fromhertz's ServiceNow Trade

Christian Fromhertz, Tribeca Trade Group Chief Executive Officer, shared with the viewers of Bloomberg Markets his bullish options trade in ServiceNow Inc NOW ahead of earnings.

Fromhertz said the options market is implying a 6.3 percent move for the event and the company has a really great consistency on earnings as the price went up after the earnings on the last eight quarters. The average move was 2.6 percent, added Fromhertz. To make a bullish bet, he wants to sell a put spread and collect a premium. Specifically, he wants to sell the February 1 expiration, 187.50/182.50 put spread.