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Mike Khouw's Yeti Options Trade

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On CNBC's "Options Action", Mike Khouw spoke about an options strategy in Yeti Holdings Inc (NYSE: YETI).

The company is going to report earnings on May 2 and the options market is implying a move of 15 percent in either direction. The stock gained 135 percent since its IPO and Khouw believes there might be some limitations for the further move higher.

Khouw wants to sell the May 3 expiration, 35-strike call for $2.40 and buy the August 35 call for $5.20. The total cost of the trade is $2.80 and the trade is going to make money if the stock trades below $35 at the May expiration and then it closes above $37.80 at the August expiration.

Related Links:

Morgan Stanley Says Yeti's Good News Is Priced In For Now

Jefferies: Yeti Is In The Early Stages Of Global Growth

Posted-In: CNBC Mike Khouw Options ActionOptions Markets Media

 

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