Mike Khouw Is Bullish On MS

Mike Khouw said on CNBC's Fast Money that he is looking at Morgan Stanley MS, and he is mildly bullish on this stock. Mike Khouw explained that he wants to sell the July 28 call for $0.25 and buy the July 26 call for $0.95. Additionally, he would sell the July 24 put for $0.60. This trade would cost him $0.10, and he will start to participate in profits above $26.10. His maximal profit would be 9%, and he will suffer losses if stock declines 10%. Morgan Stanley MS dropped 0.69% today, and closed at $25.77. It trading range was between $25.45 and $25.87.