Dan Nathan's Apple Options Trade

Dan Nathan suggested on CNBC's Options Action that investors should consider a bullish options strategy in Apple Inc. AAPL. Call options activity was very high on Tuesday as the stock reached its all-time highs.

Nathan doesn't want to buy the stock at the all-time highs, but he would define risk and buy calls. He thinks that options are cheap in Apple and he wants to buy the May 145 call for $3.75, which is 2.61 percent of the underlying price. The trade breaks even at $148.75 or 3.44 percent higher.