Market Overview

Todd Gordon's Roku Options Trade

Todd Gordon's Roku Options Trade

Todd Gordon of 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


Related Articles (ROKU)

View Comments and Join the Discussion!
Lightning Fast
Market News Service
$199 Free 14 Day Trial
Book A Demo
Learn How You Can Succeed In The Market With Benzinga Pro

Fastest Market News

Real-Time News Alerts

Customizable News Filters

Book A Demo

Mike Khouw Sees Unusual Options Activity In XLI

This Day In Market History: Iraq Invades Kuwait