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Andrew Keene's IBM Trade

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Andrew Keene of AlphaShark shared with the viewers of CNBC's Trading Nation his bullish options trade in International Business Machines Corp. (NYSE: IBM).

He said that the stock is trading close to its 150-day moving average, which proved to be a support back in July. Keene believes that the stock could reach $165 price level. He also noticed a big purchase of the November 165 calls on Tuesday, which he sees as a bullish sign.

To make a bullish bet on IBM, Keene wants to buy the November 160/165 call spread for $1.10. The trade breaks even at $161.10 or 4.4 percent higher from the closing price on Wednesday. If the stock jumps to $165, he can maximally make $3.90.

Posted-In: Andrew Keene CNBC Trading NationOptions Markets Media

 

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