On CNBC's "Options Action", Mike Khouw spoke about a bullish options strategy in Facebook Inc FB ahead of earnings.
Instead of buying the stock, which is trading close to its highs, Khouw wants to make a bullish bet using options. He wants to buy the September 170/180 call spread for $2.50. The trade breaks even at $172.50 or 4.91 percent above the current stock price. If the stock jumps to $180 or higher, the trade is going to reach its maximal profit of $7.50.
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