Todd Gordon's Bearish Apple Options Trade

Todd Gordon shared with the viewers of CNBC's "Trading Nation" his bearish trading idea in Apple Inc. AAPL.

He said that the stock underperformed PowerShares QQQ Trust, Series 1 (ETF) QQQ in the uptrend. Now that the uptrend is broken, Gordon expects Apple to lead the move lower on the downside. He thinks the stock could drop to $140.

To make a bearish bet, Gordon wants to buy the July 145/140 put spread for $1.86. The trade breaks even at $143.14 or 1.5 percent below the current stock price. It can make a maximal profit of $3.14. If the premium paid drops to 90 cents, Gordon would activate a stop loss and close the position.