Today, I would like to make a suggestion on a stock that recently reported.
The stock is Masco Corp. (MAS).
They reported on October 28th with a 26 cent beat.
I am going to suggest you trade the front month options, which expire on November 20th.
This suggestion assumes that MAS will follow through on the push it is making today.
Here is how you open the position:
Buy to Open November 20th - $55.00 Call for $2.25
Sell to Open November 20th - $60.00 Call for $.40
The net debit will be $1.85 per spread.
Based on the tracking portfolio, I suggest you limit the trade to a 6 lot or 1.1% of the portfolio.
The maximum gain on a six lot would be about $1,890 or 170%.
