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Todd Gordon's XLK Trade

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Todd Gordon of TradingAnalysis.com suggested on CNBC's "Trading Nation" a bullish options trade in Technology Select Sector SPDR Fund (NYSE: XLK). He sees the support for the stock between $77 and $78 and he believes the stock can move higher to the upper half of the $80 to $90 price range.

To make a bullish trade, Gordon wants to buy the December $83/$88 call spread for $2. The trade breaks even at $85 or 3.13% above the closing price on Tuesday and it can maximally make a profit of $3. If the stock starts to trade lower, Gordon is going to activate stop loss when the premium drops to $1.

 

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