Kevin Kelly of Recon Capital Partners shared with the viewers of Bloomberg Markets his options trade in Amazon.com, Inc. AMZN.
He likes the acquisition of Whole Foods Market, Inc. WFM and he noticed some bullish options activity after the purchase. Kelly explained that calls outnumbered puts 1.5 to 1, showing that traders are betting that Amazon could trade higher.
To create a long position, Kelly wants to buy the stock and sell the August 1,000 call against it. With the sale of the call, he can collect around 4 percent of the underlying.
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