Dan Nathan's Disney Options Trade

On CNBC's "Options Action," Dan Nathan spoke about a bullish options trade in Walt Disney Company DIS. He said the stock moved sharply higher recently and he advised viewers who missed the move not to buy the stock ahead of the earnings report, scheduled for May 8.

Instead, he wants to sell the May 140 call and buy the September 140 call for a total cost of $4.25. If the stock closes below $140 at the May expiration, Nathan is going to own the September call and have a position that breaks even at $144.25. Until the September expiration, he can consider turning the position to another calendar spread or to a vertical spread.

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