Todd Gordon's Bearish Apple Trade


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


On CNBC's "Trading Nation", Todd Gordon of TradingAnalysis.com suggested that traders should consider a bearish options strategy in Apple Inc. (NASDAQ:AAPL).

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Gordon believes the stock is going to close the gap that occurred on August 2, by trading lower to $148. To make a bearish bet, he wants to buy the October 152.50/148 put spread for $1.54. The trade breaks even at $150.96 or 1.58 percent below the current market price. It is going to reach its maximal profit of $2.96, if the stock drops to $148. If the premium gets cut in half, Gordon is going to close the trade.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: CNBCOptionsMarketsMediaTrading IdeasTodd GordonTrading Nation