Jim Strugger's Twitter Inc Hedge

Jim Strugger of MKM Holdings shared with the viewers of

a hedging strategy for

. The company is going to report earnings on February 10 and Strugger thinks that traders who have a long stock position should consider ways to contain the risk. He believes that it would be a good idea to sell the March 20 call and buy the March 12 put for just about even. If

trades lower, the long stock position would be protected below $12. If it trades above $20 at the March expiration, the trader would have to sell the stock for $20 or 34 percent higher from the closing price on Monday.