Mark Sebastian, the founder of Option Pit, spoke on Bloomberg Markets about an options trading idea in GrubHub Inc GRUB.
Analysts: Amazon's Exit From Restaurant Delivery Implies Less Competition For Grubhub
He is bullish on the stock because Amazon.com, Inc. AMZN announced it's leaving the food delivery business. He wants to use options to make a bullish bet. Specifically, he wants to buy the July 70/80 call spread for $2.80. The trade breaks even at $72.80 and if the stock jumps to $80 or higher, the trade is going to reach its maximal profit of $7.20.
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