Mike Khouw Suggests A Long Position In LOW

Mike Khouw said in an interview on CNBC that he is bullish on Lowe's Companies, Inc. LOW. Mike Khouw likes Lowe's (LOW) because it doesn't have a big exposure to economic cycle, it behaved pretty good when things were looking bleak. Mr. Khouw added that Lowe's (LOW) also doesn't have much exposure to new home sales, which doesn't look like it is going to recover any time soon. He wants to make a bullish play on LOW, using options. Mr. Khouw wants to use a risk reversal strategy, to reduce the amount of money he uses for this trade, because options are a little bit higher these days. He is planning to sell the October 23 put for $1.6 to buy October 26 call for $1.50. Lowe's (LOW) fell 1.47% and closed at $24.75.