Todd Gordon's Twitter Options Trade

On CNBC's "Trading Nation," Todd Gordon of TradingAnalysis.com spoke about a bullish options strategy in Twitter, Inc. TWTR.

The company had a good earnings report last week and the stock moved higher. Gordon explained that Twitter gapped lower in August 2018 and it seems that it is trying to close the gap now.

He sees that as a bullish sign and he wants to buy the June 42/47 call spread for $1.29. The trade breaks even at $43.29 or 8.47 percent above the closing price on Tuesday. If the stock moves to $47 or higher, the trade is going to reach its maximal profit of $3.71.