Dan Nathan's Ford Trade

CNBC Option Action's Dan Nathan suggested on the show that investors should consider a bullish options strategy in Ford Motor Company 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 that $16 is a very important break out level and he is watching if the stock is going to be able to break above that level.

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.