Todd Gordon's Morgan Stanley Trade: Election Volatility

On CNBC's Trading Nation, Todd Gordon of TradingAnalysis.com suggested a bullish options trade in Morgan Stanley MS. He wants to set up the trade before the election results because he expects an increase in volatility after the event, which should be positive for investment banking business.

Gordon explained that the stock is currently trading close to its resistance and he expects it to jump above the resistance and trade up to $36. When the stock was trading at $33.77, Gordon suggested a purchase of the November 34/36 call spread in Morgan Stanley for $0.57. The trade breaks even at $34.57 and if the stock trades to $36 or higher at the November expiration, the trade would make the maximal profit of $1.43.