Dan Nathan's Jabil Circuit (JBL) Trade

CNBC Options Action's Dan Nathan suggested investors to consider an options strategy in Jabil Circuit, Inc. JBL. He said that Jabil Circuit (JBL) is a company that makes the products that end up in Best Buy Co., Inc. BBY or RadioShack Corporation (RSH). Cisco CSCO is one of its biggest customers. JBL generates 12% of its revenue from Research In Motion RIMM and it generates 10% from Hewlett-Packard Company HPQ. This stock is very volatile. JBL recently rallied 23%, and it is still down 23% on the year. On the earnings it moves approximately 11%, and Jabil Circuit (JBL) will report earnings on Monday. Dan Nathan wants to buy a strangle in Jabil Circuit (JBL). Specifically, he wants to buy the October 13 put for $0.50, and the October 14 call for $0.45. This trading structure would cost him $0.95, and to make money Jabil Circuit (JBL) has to be at $14.95, or at $12.05 at the expiration. If it doesn't make a sharp move he would lose money.