Mark Sebastian's Grubhub Options Trade

Mark Sebastian, the founder of Option Pit, spoke on Bloomberg Markets about an options trading idea in GrubHub Inc (NYSE: GRUB).

Analysts: Amazon's Exit From Restaurant Delivery Implies Less Competition For Grubhub

He is bullish on the stock because Amazon.com, Inc. (NASDAQ: AMZN) announced it's leaving the food delivery business. He wants to use options to make a bullish bet. Specifically, he wants to buy the July 70/80 call spread for $2.80. The trade breaks even at $72.80 and if the stock jumps to $80 or higher, the trade is going to reach its maximal profit of $7.20.