Todd Gordon's Facebook Options Trade

Todd Gordon of TradingAnalysis.com spoke on CNBC's Trading Nation about a bullish options strategy in Facebook Inc FB. He said that the stock was very strong in 2017, but recently it has started to hesitate a little bit and he expects it to pullback to its technical support, which should be around $140 or $141 level.

Gordon added that implied volatility in the name has started to increase as we approach earnings report. When the stock was trading at $141.35, Gordon suggested traders should consider a purchase of the April 141/145 call spread for $1.73. The trade breaks even at $142.73 or 0.32 percent above the closing price on Monday. If the stock jumps to $145 or higher at the April expiration, the trade is going to reach its maximal profit of $2.27. If the premium drops to $0.85, Gordon is going to close the position.