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Call butterfly, bear put spread in the grocery company
Related Symbols: WFMI
The Pick – Whole Foods Market Inc. (NASDAQ: WFMI):
On Feb. 17, Mad Money host Jim Cramer said, “Even though they are in a short squeeze, the shorts missed that WFMI is the best place to take food home from.” He added that this is the key reason the company made its quarter. WFMI shares were trading at $34.35 at the time of Cramer’s comments after popping 10% after its earnings report.
Bullish Option Trading Idea for WFMI:
Call butterfly –
Maximum risk: $6.90 plus commissions
Maximum potential profit: $4.10 minus commissions
Breakeven: The strategy will be profitable if WFMI shares are trading higher than $31.90 at May expiration.
Bearish Option Trading Idea for WFMI:
Maximum risk: $8.50 plus commissions
Maximum potential profit: $2.50 minus commissions
Breakeven: The strategy will be profitable if WFMI shares are trading lower than $36.50 at May expiration.
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