Mike Khouw Is Bullish On MS

Mike Khouw said on CNBC's Fast Money that he is looking at Morgan Stanley (NYSE: MS), and he is mildly bullish on this stock.

Mike Khouw explained that he wants to sell the July 28 call for $0.25 and buy the July 26 call for $0.95. Additionally, he would sell the July 24 put for $0.60. This trade would cost him $0.10, and he will start to participate in profits above $26.10. His maximal profit would be 9%, and he will suffer losses if stock declines 10%.

Morgan Stanley (NYSE: MS) dropped 0.69% today, and closed at $25.77. It trading range was between $25.45 and $25.87.