Mike Khouw Is Bullish On General Electric (GE)

On CNBC's Options Action, Mike Khouw said that he is bullish on General Electric Company GE ahead of earnings. He doesn't want to rush in and buy at the money July calls. Instead, he wants to sell some downside puts at the point where he is comfortable owning the stock, and also he wants to buy some upside calls with the August expiration. Specifically, he would like to sell the August 14 puts for $0.35, and buy the August 16 calls for $0.25. This trade will help him collect $0.10, which is equal to General Electric's (GE) dividend. Mike Khouw added that you can take the dividend early and make a bullish trade, and if things go in other direction, Mr. Khouw would be happy to own General Electric (GE) at $14. General Electric Company (GE) gained 0.81% on Friday, and closed at $14.95. It will report earnings on July 16th.