Dan Nathan's Ford (F) Trade

On CNBC's Options Action, Dan Nathan suggested investors with a long position in Ford F to consider a risk reversal strategy. He added that Ford (F) is 60% up YTD, and it benefited from the fact that General Motors has not been around. Today, Ford (F) fell 3.36% as investors decided to make some room in order to participate in GM's IPO. Dan Nathan wants to sell the December 14 put for $0.10, and buy the December 18 call for $0.20. This trade would cost him $0.10, and it would be profitable if Ford (F) trades above $18.10 at the expiration. Ford (F) dropped 3.36% on Thursday, and closed at $16.12.