Steve Sosnick's Bearish Morgan Stanley Trade

Steve Sosnick, the chief options strategist at Interactive Brokers, recommended on Bloomberg Markets a bearish options strategy in Morgan Stanley (NYSE: MS). He would use it as a hedge for a long stock position or as a bearish bet.

Sosnick wants to buy the September 44.50/43.50 put spread for 35 cents. The trade breaks even at $44.15 or 2.32 percent below the closing price on Friday. It can maximally make a profit of 65 cents.