Dan Nathan spoke on Friday's CNBC's "Options Action" about a bullish options trade in General Electric Company GE.
John Flannery, the CEO of the company, is going to to disclose his plans for General Electric Monday and Nathan wants to use options to get a long exposure ahead of the event.
Specifically, he wants to buy the January 20/24 call spread for a total cost of $1.10. The trade breaks even at $21.10 or 2.98 percent above the current market price. He can maximally make $2.90, if the stock trades to $24 or higher at the January expiration.
On Monday morning, GE cuts its quarterly dividend from 24 cents to $12 cents per share. Flannery will focus on three key units of the company: health care, power and aviation.
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