Kevin Kelly's Southern Co Trade

Speaking on Bloomberg Markets, Kevin Kelly of Recon Capital Partners suggested that investors should consider a bullish options strategy in Southern Co (NYSE: SO).

He thinks that Southern Co is one of the best run utility company and it's focused on growth. Kelly explained that the company added $2 billion to its capex to boost its growth and he believes it's a good idea to initiate a long position in the name. He wants to do that by selling the November 50 put for $0.52. The trade starts to lose money at $49.48 or 6.36 percent lower from the closing price on Tuesday.