Market

Scott Bauer’s Momo Options Trade

Scott Bauer of Trading Advantage suggested on Bloomberg Markets a bullish options strategy in Momo Inc (ADR) MOMO.

The company is going to report earnings on Tuesday and the options market is anticipating a $5 move in either direction. Bauer thinks that the stock is going higher and he wants to buy the May 46/49 call spread for $0.80. The trade breaks even for $46.80 or 9.27 percent above the current market price. It can maximally make a profit of $2.20.

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