Dan Nathan's Alphabet Options Trade

Dan Nathan suggested on CNBC's Options Action a bullish options strategy in Alphabet Inc GOOGL.

He said the stock has already rallied and he doesn't like to chase stocks, but he is willing to consider a risk reversal strategy in Alphabet, because he sees its January earnings results as a potential positive catalyst.

Nathan wants to sell the February 760 put and use the proceeds to buy the February 850 call. He is going to make money if the stock trades above $850 at the February expiration and he is going to have to buy the stock if it drops below $760. He sees $760 as a technical support.