Christian Fromhertz's ServiceNow Trade

Christian Fromhertz, Tribeca Trade Group Chief Executive Officer, shared with the viewers of Bloomberg Markets his bullish options trade in ServiceNow Inc (NYSE: NOW) ahead of earnings.

Fromhertz said the options market is implying a 6.3 percent move for the event and the company has a really great consistency on earnings as the price went up after the earnings on the last eight quarters. The average move was 2.6 percent, added Fromhertz. To make a bullish bet, he wants to sell a put spread and collect a premium. Specifically, he wants to sell the February 1 expiration, 187.50/182.50 put spread.