Andrew Keene's Microsoft Options Trade

Andrew Keene suggested on CNBC's Trading Nation a bullish options strategy in Microsoft Corporation MSFT ahead of earnings.

The company is going to report earnings on October 20 and Keene thinks the stock is going to breakout to the upside after a couple of months of sideways trading. He believes it is going to jump to 62.50 and he wants to buy the November 60/62.50 call spread for $0.45 to make money on the potential move higher.

The trade breaks even at $60.45 or approximately 5 percent higher and it can maximally make $2.05, if Microsoft trades at $62.50 or higher at the November expiration.