Dan Nathan's JPMorgan Options Trade

On CNBC's "Options Action," Dan Nathan suggested a bullish options trade in JPMorgan Chase & Co. JPM going into earnings. The company is going to report earnings on Tuesday and Nathan believes the stock could move higher and break the $120 resistance.

Nathan wants to have a long exposure, but he wants to define the risk. So he decided to buy the December $120 call for $3. The trade breaks even at $123 or 5.91% above the closing price on Friday.