CNBC Options Action's Carter Worth and Mike Khouw recommended on June 19 a bullish options trade in Kraft Heinz Co KHC. Based on Worth's bullish technical view, Khouw sold the August $32.50 put for $1.90.
Since then the stock traded a bit lower and it is trading close to the strike at which Khouw sold the put. If the stock closes below $32.50 at the August expiration, he is going to have to own the stock at $32.50, but his effective price would be $30.60, since he collected $1.90 of premium. Khouw is comfortable owning the stock at that price and he is going to stay in the position.
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