Dan Nathan's Macy's Trade

Dan Nathan shared with the audince on

his bullish point of view on

. The company is going to report earnings on Tuesday and Nathan decided to buy a call spread on Friday to make a bullish bet. Nathan bought the March 65 call option for $0.90 and sold the March 67.50 call option for $0.30, paying $0.60 for the spread. The break even for the trade is at $65.60 and the maximal profit is $1.90. He is selling the call option close to

previous high. Mike Khouw likes the idea, but he would not use a call spread. He thinks that it would be better to just buy the call because options are currently not expensive and it looks to him that the stock might spike above its previous high.