Alan Knuckman's Bullish BP Trade

Alan Knuckman of Bulls-Eye spoke on Bloomberg Markets about a bullish options trading strategy in BP plc (ADR) BP.

He said the bull market in crude oil is still intact and he thinks a move above $55 would send it to its highs and then to $62.50, from a measured move target objective. Knuckman added that there is more room on the upside in crude oil and he expects to see another short squeeze.

Knuckman believes BP is going to trade higher with crude oil and he wants to buy the January 30 calls for $5.25. The trade breaks even at $35.25 or 0.46 percent above the closing price on Monday.