Todd Gordon's iShares Russell 2000 Index ETF Options Trade

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Todd Gordon recommended on CNBC's Trading Nation a bearish options strategy in iShares Russell 2000 Index (ETF) IWM.

He thinks that the stock is going to test its technical support at $128 and he wants to use options to make a bearish bet. Gordon wants to buy the April 132 put and sell the April 128 put for a total cost of $1.25. The trade breaks even at $130.75 and it can make a maximal profit of $2.75. If the premium drops to $0.62, Gordon is going to close the position.

Posted In: CNBCOptionsMarketsMediaETFsTodd GordonTrading Nation
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