Scott Bauer's Viacom, Inc. Trade
On Bloomberg Markets, Scott Bauer of Trading Advantage shared with the viewers his trading idea for Viacom, Inc. (NASDAQ: VIAB).
Bauer likes the stock because of its 4 percent dividend yield, and he thinks that it has found support after the post-earnings sharp move lower. To make a bullish bet, he wants to sell the March 32.50 put and buy the March 30 put. He can collect $1.25 in premium with this trade, if the stock trades above $32.50 at the March expiration. If it drops to or below $30, he can maximally lose $1.25.
Bauer doesn't think that Viacom, Inc. is going to rally significantly higher, but he believes that the stock has bottomed and he would be happy to own it at $31.25.
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