Todd Gordon's Bullish Tesla Options Trade

On CNBC's "Trading Nation", Todd Gordon of TradingAnalysis.com spoke about a bullish trading idea in Tesla Inc TSLA. He thinks the stock is going to move to $400 in the short term.

To make a bullish bet, Gordon wants to buy the July 395/400 call spread for $1.55 and he wants to sell the July 370/365 put spread for a credit of $1.83. If the stock closes between $370 and $395 at the July expiration, Gordon is going to make 28 cents. If it closes above $395 at the July expiration, the trade is going to make additional profit and it can maximally make $5.28, if Tesla jumps 4.55 percent to $400. The trade can maximally lose $4.72, if the stock drops to $365 or lower.

Gordon added that he is planning to close both trades, if the stock drops to $370.