Todd Gordon's Lululemon Options Trade

On CNBC's "Trading Nation," Todd Gordon suggested a bullish options trade in Lululemon Athletica Inc LULU. He owns the stock in his portfolio, but he is looking to get more active in the options market.

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Lululemon just got some good news from Bank of America. The analyst raised its price target to $390 and the stock is currently trading at $341. Gordon believes the stock is well position to benefit in the current stay-at-home environment.

He noticed a gap on Lululemon's chart in the $360 and $340 region and he thinks the gap is set to close. To make money on a potential move higher, Gordon wants to buy the November $340/$360 call spread for $7.80. The max profit is $12.20 and the trade breaks even at $347.80.