Todd Gordon of TradingAnalysis.com analyzed on CNBC's Trading Nation a price action in Shares Russell 2000 Index (ETF) IWM. He thinks that the stock is going to fall to $120 and he wants to use options to set up a bearish trade.
Gordon wants to buy the October 123/120 put spread for $0.65 and he wants to place a stop loss at $124. The trade starts to make money below $122.35 and it can maximally make $2.35, if Shares Russell 2000 Index (ETF) drops to $120 or lower at the October expiration.
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