Khouw suggested selling March 95 calls.
“You can collect about $3.80 for those,” he said. “That’s got about a 4 percent yield-to-maturity on that, and you could still have about 6 ½ percent total upside if the stock does rally through that strike, and that’s only about 6 or 7 cents below the average analysts’ price target, although I do expect to see that rise.”
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Trader disclosure: On Jan. 24, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Guy is long Citigroup; Guy is long (GS); Guy is long (INTC); Guy is long (AGU); Guy is long (MSFT); Guy is long (NUE); Guy is long (BTU); Karen is long (JPM); Karen is long (BAC); Karen is long (PLCM); Karen is long (IBM);
For Karen Finerman
Karen’s fund is long (AAPL)
Karen’s fund is long (JPM)
Karen’s fund is long (PLCM)
Karen’s fund is short (SPY)
Karen’s fund is short (MDY)
For Keith McCullough
No disclosures received
For Mike Khouw
No Disclosures received
For Colin Gillis, BGC Financial
For Michael Burns, Lionsgate
For Don Bubar, Avalon Rare Metals
For Matt Hougan, Index Universe
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