GO
Loading...

Options Action: Western Digital

Considering results from Intel showed corporate spending for large server farms was much stronger than expected, how should you game Intel rivals?

Mike Khouw of Cantor Fitzgerald suggests looking at Western Digital but rather than taking a long position in stock, he thinks you can profit through options.

He’s a seller of the Aug 32 puts @1.60

It’s a bullish bet - not only does Khouw expect the stock to rally in the wake of Intel earnings, but he says it’s also oversold.

In other words he expects the stock to remain above $32 through the third week of August. However it’s worth noting that if Khouw is wrong and the stock falls –you could have the stock put to you at $32 – meaning you’d have to buy it for $32/share.

* Learn more about his trade. Watch the video now!




______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com 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 fastmoney@cnbc.com.

CNBC.com with wires

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report