Dan Nathan's Electronic Arts Trade

On CNBC's "Options Action", Dan Nathan spoke about a bullish options strategy in Electronic Arts Inc. EA. The stock traded sharply lower on the news that China is going to restrict new games, implement age restrictions and limit the time minors are allowed to play games. Nathan isn't concerned and he thinks that this could be a good moment to get a long position.

He wants to sell the November 100 put for $2 and buy the November 120 call for $4.50. If the stock trades above $122.50 at the November expiration, the trade is going to make money. If the stock trades below $100, Nathan would have to buy the stock at $100.