Dan Nathan's Apple Hedge

On CNBC's "Options Action", Dan Nathan spoke about an options strategy in Apple Inc. AAPL, ahead of the Apple Developer Conference.

He thinks it would be a good idea to use options to protect a long position in the name. He wants to sell the September 170 call against a long stock position and use the proceeds to buy the September 140 put. The options strategy offers protection below $140 or 9.94 percent below the current stock price. If Apple trades higher, above $170, Nathan's selling price would be capped at $170, giving him a potential upside of 9.36 percent.