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Todd Gordon's Roku Options Trade

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Todd Gordon's Roku Options Trade

Todd Gordon of TradingAnalysis.com shared with the viewers of CNBC's "Trading Nation" his bullish options trade in Roku Inc (NASDAQ: ROKU). The company is going to report earnings on Aug. 7.

He expects to see a technical resistance around $125 and he noticed a bull flag technical pattern on Roku's chart. To make a bullish trade, Gordon wants to use options.

He wants to buy the Aug. $115 call, sell two contracts of the Aug. $120 call and buy the Aug. $125 call. The trade would cost him around 34 cents. The trade breaks even at $120.34 and it can maximally make $4.66 if the stock jumps to $120 after earnings. Above $120, the profit starts to trail off and at $125, the trade loses 34 cents.

Posted-In: CNBC Todd Gordon Trading NationOptions Markets Media Best of Benzinga

 

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