Kevin Kelly of Benchmark Investments spoke on Bloomberg Markets about a bullish options strategy in Zayo Group Holdings Inc ZAYO.
He said there are some rumors about a possible takeover in a range of $36.50 to $38.50 per share and he wants to use options to trade on these rumors. Kelly wants to buy the May 30/37.50 call spread for $3.15. The trade breaks even at $33.15 or 4.67 percent above the closing price on Monday. If the stock moves to $37.50 or higher at the may expiration, the trade is going to reach its maximal profit of $4.35.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.