Kevin Kelly's Bullish Apple Trade

Speaking on Bloomberg Markets, Kevin Kelly of Kelly & Co. recommended a long position in Apple Inc. (NASDAQ: AAPL).

He thinks the stock is going to trade higher after the key event on Tuesday and he wants to buy a risk reversal to make a bullish trade.

See Also: Outlook For Apple's Main Event? AR, 3D And A Swankier Siri Tying It Tightly Together

Specifically, Kelly wants to sell the January 155 put and buy the January 165 call for a total cost of $1.10. The trade breaks even at $166.10 or 2.85 percent above the closing price on Monday. If the stock closes below $155 at the January expiration, Kelly is going to have to purchase Apple for $155.