Jim Strugger's Goldman Sachs Trade

Speaking on Bloomberg Markets, Jim Strugger of MKM Holdings said he's looking into a long options strategy in Goldman Sachs Group Inc (NYSE: GS) ahead of earnings.

The company is going to report earnings on July 19 and it usually moves 3 percent, which is what the market implies at the moment. To make a bullish bet, Strugger wants to buy the October 160/180 call spread for $3.70. The breakeven for the trade is at $163.70 at the October expiration and it can maximally make $16.30.

Strugger explained that this trade is good for traders who still see risk in the market, but want long directional exposure.