Tony Zhang's Teladoc Health Trade

On CNBC's "Options Action," Tony Zhang suggested a bullish options trade in Teladoc Health Inc TDOC ahead of the earnings.

The company is going to report earnings in couple of weeks and options premium is a little bit elevated, said Zhang. He expects the stock to stay around $170 or trade a little bit higher, so he wants to sell the May $170/$150 vertical put spread for $8 credit. If the stock stays above $170 at the May expiration, Zhang is going to collect the premium. He starts to lose money below $162 and he can maximally lose $12.