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Mike Khouw's Verizon Trade

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Mike Khouw joined CNBC's Options Action to discuss his Verizon Communications (NYSE: VZ) trade.

On July 18, Khouw recommended a purchase of the January 50 call for $2.10. The stock was trading at $50.75 at that time and after he initiated the long position, the stock gained two percent, closing at $51.76 on July 30. In the last two trading sessions, Verizon struggled like the rest of the market and on Friday it closed at $49.83, or 3.73 percent lower of the July 30 closing price.

Khouw said that he is definitely going to stick with this trade. He explained that the stock has declined much more than the option, which is only down approximately $0.20. Khouw said rising yields should not affect much this stock.

Carter Worth commented that he likes Verizon, that nothing has changed on the pattern basis and he would stay on this course.

Posted-In: Carter Worth CNBC CNBCLong Ideas Options Markets Media Trading Ideas


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