Dan Nathan's Apple Inc. Hedge

Dan Nathan spoke on CNBC's Fast Money about his expectations for Apple Inc. AAPL ahead of earnings, scheduled for October 20. He thinks that the sentiment for the stock is positive and that earnings will meet the expectations, but he is not happy with the last week's iPad presentation. Nathan believes that a weak guidance could be a reason for a sell off in the stock, but not as large as the Netflix, Inc. NFLX sell off, because Apple Inc. is a defensive stock. Nathan believes that it would be a good idea for traders with a long position in Apple Inc. to buy the October weekly 96 put for $1.40. The break even for this trading strategy is at $94.60, which is just below the key support level.