Todd Gordon's iShares MSCI Emerging Markets Indx ETF Trade

On CNBC's Trading Nation, Todd Gordon shared his analysis of iShares MSCI Emerging Markets Indx (ETF) EEM. He believes that the emerging market stocks can continue to push higher after crude oil moved into $50 region. He added that the range bound U.S. dollar is also going to help the emerging market stocks.

Gordon explained that iShares MSCI Emerging Markets Indx (ETF) has been consolidating lately and he thinks that it can break out to the upside and reach $40. He wants to open a long position by purchasing the November 38/40 call spread for $0.83. The trade breaks even at $38.83 or 1.8 percent higher from the current stock price and it can maximally make $1.17 if iShares MSCI Emerging Markets Indx (ETF) jumps to $40 or higher. Gordon wants to close the position if the stock drops to $37.50.