On CNBC's "Options Action", Dan Nathan suggested an options strategy in Alphabet Inc GOOGL GOOG. He said the stock is acting really well in the face of a lot of really bad headlines and he thinks it could break out on the upside after the earnings report in October.
To make a bullish bet, Nathan wants to use a call calendar. He wants to sell the Oct. $1,300 call for $6 and buy the Nov. $1,300 call for $21. The trade would cost him $15 and he is hoping that the stock would close below $1,300 at the October expiration and trade above $1,315 at the November expiration.
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