Skip to main content

Market Overview

Jim Strugger's Kellogg Options Trade

Share:

Speaking on Bloomberg Markets, Jim Strugger of MKM Holdings suggested a bullish options strategy in Kellogg Company (NYSE: K).

He is bullish on the stock because he thinks the company might become a takeover target. He noticed on Monday an increased options activity in the name.

Strugger wants to sell the July 67.50/60 put spread and buy the March 77.50 call for a total credit of $0.30. He is going to collect the premium if the stock trades above $67.50 at the July expiration. If the stock trades above $77.50 at the March expiration, he is going to make additional profit on the call option. The trade can maximally lose $7.20, if Kellogg drops to or below $60 at the July expiration.

 

Related Articles (K)

View Comments and Join the Discussion!

Posted-In: Jim Strugger MKM HoldingsOptions Markets Media

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com