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Dan Nathan's General Electric Trade

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Dan Nathan spoke on Friday's CNBC's "Options Action" about a bullish options trade in General Electric Company (NYSE: GE).

John Flannery, the CEO of the company, is going to to disclose his plans for General Electric Monday and Nathan wants to use options to get a long exposure ahead of the event.

Specifically, he wants to buy the January 20/24 call spread for a total cost of $1.10. The trade breaks even at $21.10 or 2.98 percent above the current market price. He can maximally make $2.90, if the stock trades to $24 or higher at the January expiration.

On Monday morning, GE cuts its quarterly dividend from 24 cents to $12 cents per share. Flannery will focus on three key units of the company: health care, power and aviation.

Posted-In: Mike Khouw Options ActionCNBC Options Markets Media


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