Mike Khouw's Whirlpool Corporation (WHR) Trade

Mike Khouw said on CNBC's Fast Money that he is looking at Whirlpool Corporation WHR. He explained that there are rumors on the Wall Street that Whirlpool Corporation (WHR) could be a takeover candidate. Mike Khouw wants to use a risk reversal strategy in order to profit on these rumors. He wants to sell the October 75 put for $4.00, and buy the October 85 call for $2.75. This structure will allow him to collect $1.25. If the rumors about takeover turn to be true, and the stock moves higher, Mike Khouw will generate a nice profit with this trade. Whirlpool Corporation (WHR) gained 0.17% today, and closed at $77.71. It had a volume of 3.01M shares.