Dan Nathan's Under Armour Trade

, Dan Nathan suggested a way to take a long position in

using options. The stock caught his attention because it recovered the losses from August and it reached its new all time high at $105.89. Nathan doesn't like to chase stocks that move sharply higher. He identified $90 as a break out level which sparked the uptrend and he would have no concerns owning stocks at that price level. Since the implied volatility is still relatively elevated, Nathan thinks that it would be a good idea to sell the October 30, 92.5 strike put for $2. If

drops below $92.5 at the October 30 expiration he would have to buy the stock at $92.5, but with the premium that he collected from the sale of the put option, it would cost him $90.50 to buy

. If the stocks stays above $92.5 he would keep the premium, and make approximately 2 percent of the current stock price in a month. Nathan would start to lose money below $90.50.