Mike Khouw's Mosaic (MOS) Trade

CNBC Options Action's Mike Khouw said on the show that options market is implying a move of 5% in Mosaic Company MOS, which is in line with the way the stock has historically performed on the earnings. He thinks that it would be wise to collect some premium in this environment. If you have a long position in Mosaic (MOS), Mike Khouw recommends a covered call. Specifically, he would sell the April 80 call for $2.50. This strategy would give you a yield of 3.20% for two weeks, and if the stock rallies after the earnings report, you are going to collect the premium, and participate on the upside as well. The Mosaic Company MOS fell 1.46% on Monday, and it closed at $77.67.