Scott Bauer of Trading Advantage suggested on Bloomberg Markets a bullish options strategy in Momo Inc (ADR) MOMO.
The company is going to report earnings on Tuesday and the options market is anticipating a $5 move in either direction. Bauer thinks that the stock is going higher and he wants to buy the May 46/49 call spread for $0.80. The trade breaks even for $46.80 or 9.27 percent above the current market price. It can maximally make a profit of $2.20.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in