HALISTER1: Sell Fred’s Calls, Kellogg Put Spread, MKM Partners Recommends

Sell Fred’s Calls, Kellogg Put Spread, MKM Partners Recommends

(Bloomberg) -- Sell Fred’s March $17.50 calls to extract volatility premium from stock until there’s more clarity around company’s deal with WBA, RAD, MKM derivatives strategist Jim Strugger recommends.
  • Notes 100bp decline in FRED put/call ratio over last 60 days; ~200% jump in total open interest
  • Recommends selling Kellogg July $67.50/$60 put spread to finance purchase of march $77.50 calls
  • NOTE: Feb. 1, Get Long Video Game Stocks Before Upcoming Earnings Reports: MKM
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
K US (Kellogg Co)
FRED US (Fred's Inc)

People
Jim Strugger (MKM Partners LLC)

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