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Dan Nathan's Options Strategy That Offers Protection In Apple Inc. For Free

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On CNBC's Options Action, Dan Nathan suggested that traders with a long position in Apple Inc. (NASDAQ: AAPL) should consider using options and getting some protection.

For those who have a long stock position, Nathan recommended a purchase of the May 115 put for $2.40 and he would finance the put with a sale of the May 140 call for $2.40.

Traders who feel that there is a potential for a massive move on the downside, but they also want to be able to participate in a potential move higher should consider the strategy, said Nathan.

Below $115, a trader with a long position is protected and if the stock moves above $140, Nathan said he would have to sell at that price level.

Posted-In: Dan Nathan Options ActionCNBC Media


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