Todd Horwitz's ConocoPhillips Trade

Speaking on Bloomberg Markets, Todd Horwitz of BubbaTrading.com said that he is a buyer of ConocoPhillips COP ahead of earnings, because he thinks that crude oil has bottomed. He also likes its 8 percent dividend yield. To make a bullish bet, Horwitz wants to sell 5 contracts of the February 36/35 put spread for $0.50 and buy the March 37 call for $2.40. His total risk is $4.90 or $0.5 per contract for the put spread and $2.40 for the call option. If the stock trades above 36 at the February expiration, he will collect the premium and he will have a chance to make money on the call option if the stock trades above $37 until the March expiration.