Mike Shapiro's Bullish Red Hat Trade

Mike Shapiro of MWS Capital Consultants spoke on Bloomberg Markets about a bullish options trade in Red Hat Inc RHT.

The stock is trading well below its highs and Shaprio thinks that it might recover. To make a bullish bet, he wants to buy the January 130 call for $5.30. The trade breakevens at $135.30 or 9.52 percent above the closing price on Monday. Shapiro explained that with this trade he is trying to take advantage of the sell-off in a high-quality technology name.