Dan Nathan's Nike Inc Trade

On CNBC's "Options Action," Dan Nathan suggested a bullish options strategy in Nike Inc NKE.

He thinks the stock could set up as an interesting sentiment trade over the next month because the Olympic games bring a lot of enthusiasm around the company. It had a good quarter, and its sales in China were good, but currency remains a problem, explained Nathan. He added that the stock has been lagging the market lately, but it could trade higher and catch up with the rest of the market.

Related Link: Barron's: How To Find Safe 5% Yields

To make a bullish bet, Nathan wants to sell the September 52.50 put for $0.40 and buy the September $57.50 call for $0.55. The trade would cost him $0.15 and if the stock trades higher, he would start to make money above $57.65. The trade starts to lose money below $52.35.

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