Options Action: Cliffs Natural Resources (CLF)

How would you like to buy stocks at a discount and get paid to do it?

That is exactly what certain options strategies allow you to do. And with volatility returning to the market, now could be the time to employ such strategies.

Mike Khouw of Cantor Fitzgerald suggests looking at mining stocks and presents an options trade in Cliffs. It follows:

Stock At $58.50
Sell the June 55 Puts for $3.75

How Mikes Trade Makes Money
Profits Above $51.25
Losses Below $51.25

Learn more about this trade. Watch the video now!

______________________________________________________
Got something to to say? Send us an e-mail at [e-mail] and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to [e-mail].

CNBC.com with wires