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Dan Nathan's Ford Trade

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CNBC Option Action's Dan Nathan suggested on the show that investors should consider a bullish options strategy in Ford Motor Company (NYSE: F).

He is encouraged by the January sales numbers, which were much better than expected for all the companies in the space.

Nathan added that the stock was trading between $13 and $18; it's trading close to the middle of this range now. He suggested $16 is an important level, and said he's watching if shares can break above that point.

Nathan wants to buy the May 16 call option and pay $0.70 for the strike. Before May, Ford is going to post a few more monthly sales reports and its Q1 earnings report.

The break-even for this trade is at $16.70 -- approximately 5 percent higher.

Posted-In: Dan Nathan Options ActionCNBC Options Markets Media


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