Dan Nathan's McDonald's Corporation Trade

, Dan Nathan suggested that traders should consider a stock replacement strategy in

. Instead of owning the stock, Nathan would sell it and buy the June 120 call for $6. The call option is already in the money and the trade breaks even at $126 or 2 percent above the Friday's closing price. Nathan believes that

is a good candidate for the stock replacement strategy because it has a high valuation and a high single digit growth. Its options are currently cheap due to low volatility, but macroeconomic problems that caused recent spike in volatility might still be present and they could push volatility higher. Nathan added that the recent rally in the name was mostly driven by weakness in the U.S. dollar.