Dan Nathan's Ford Trade
He is encouraged by the January sales numbers, which were much better than expected for all the companies in the space.
Nathan added that the stock was trading between $13 and $18; it's trading close to the middle of this range now. He suggested $16 is an important level, and said he's watching if shares can break above that point.
Nathan wants to buy the May 16 call option and pay $0.70 for the strike. Before May, Ford is going to post a few more monthly sales reports and its Q1 earnings report.
The break-even for this trade is at $16.70 -- approximately 5 percent higher.
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