Todd Gordon's Halliburton Trade

On CNBC's "Trading Nation", Todd Gordon spoke about a bullish options trading idea in Halliburton Company HAL.

The stock was in an uptrend in 2016 and it pulled back in 2017. Gordon noticed that it retraced 50 percent of the rally and he expects to see a move higher after the company reports earnings. He wants to use options to make a bullish bet ahead of earnings.

Gordon wants to exploit high implied volatility and sell the July 45/43 put spread for a total credit of 48 cents. If the stock stays above $45 at the July expiration, Gordon is going to collect the premium. Below $44.52, the trade is going to lose money and it can maximally lose $1.52.