Scott Nations Suggests An Options Strategy In American Tower Corporation (AMT)

On CNBC's Options Action, Scott Nations talked about an options strategy in American Tower Corporation AMT. He explained that the best trade on the recent Verizon iPhone chatter is the infrastructure. American Tower (AMT) builds and sells towers, but it also leases towers to carriers, and Scott Nations believes that we are going to see a lot of demand for its products and services. The problem with this stock is that it is pretty expensive, said Scott Nations, and explained that AMT is trading at 58 trailing P/E. On the other hand, options are pretty cheap. Scott Nations thinks that it would be a good idea to buy the April 52.50 call for $1.40. His upside break even on this trade is at $53.90. He recommended this strategy for traders who are looking for a long exposure or stock replacement. American Tower Corporation (AMT) gained 0.12% today, and closed at $50.47.