Dan Nathan's Cisco Trade

CNBC Options Action's Dan Nathan suggested on the show that traders should consider a bullish options strategy in Cisco Systems, Inc. CSCO.

He likes the company because of its buybacks and its 3.3 percent dividend yield, but he's also optimistic about its recent acquisition of AppDynamics.

Cisco is going to report earnings on Wednesday and Nathan isn't expecting a lot from the event. He thinks the stock might even fail to break $32 on the event. He wants to take a longer term approach and buy the June 32/36 call spread for $1.

The break even for the trade is at $33 or 4.73 percent above the current market price. It can maximally make a profit of $3, if the stock jumps to $36 or higher.