Dan Nathan's Exxon Mobil Trade

On CNBC's Options Action, Dan Nathan spoke about Exxon Mobil Corporation XOM, which is due to report earnings on January 31.

He said that the options market is implying a move of 1.5 percent on the event and that has been an average move over the last four quarters. Nathan added that Exxon Mobil is currently trading at its support at $85.

For traders who want to get a long position in the name, he recommended a purchase of the February 86 calls for $0.95. The trade breaks even at $86.95 or 1.58 percent above the current market price.