On Friday’s Options Action, the crew analyzed the performance of Verizon (VZ). Verizon has underperformed the DOW over the past couple of years but has outperformced substantially during the recent selloff. Coupled with a recent breakout above $52, sets VZ for a rally higher as markets recover. Expecting VZ to move higher, Michael Khouw suggests buying an April 55 Call for a $3.00 Debit. As of Friday’s close, these call options were trading at a $3.10 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: VZ Options Action Video