Mike Khouw's Apple (AAPL) Trade

CNBC Options Action's Mike Khouw talked on the show about an options strategy in Apple Inc. AAPL. He said that the market traded sharply lower today, but the volatility didn't pop much. Mike Khouw thinks that you can still be long premium at this point. Apple (AAPL) is going to report earnings on April 20th, and Mike Khouw wants to buy the June 315 put for $12.50, and sell the June 285 put for $4.20. This trade would cost him $8.30, and his break even would be at $306.70. Apple (AAPL) gained 1.34% on Monday, and it closed at $331.85.