Dan Nathan's Twitter Inc Trade

Dan Nathan shared his thoughts about Twitter Inc TWTR on CNBC's Options Action. The stock price is approaching the IPO price and Nathan believes that it could trigger some alarms for many traders. He thinks that the best way to make a bullish bet is with options. Nathan wants to buy the January 30 call option for $2.45 and sell the January 40 call option for $0.65. The call spread would cost him $1.80 and it would be profitable if the stock trades above $31.80 at the January expiration. The maximal profit for this trade is $8.20, if the stock hits $40.